P&C Insurance in Latin America 2017: The CIO Perspective

by Juan Mazzini, May 2, 2017
Industry Trends
Latin America

Abstract

Latin American P&C insurers continue in their quest for digital and becoming a source of innovation.

Celent has released a new report titled P&C Insurance in Latin America 2017: The CIO Perspective. The report was written by Juan Mazzini, a Senior Analyst with Celent’s Insurance practice.

Latin American P&C insurers continue in their quest of digital and becoming a source of innovation.

The main business goals driving IT plans of P&C Latin American insurers in 2017 are IT-enabled innovation, process optimization, and growth and retention.   

In 2017 activity has been focused on IT projects related to core system replacement or modernization, digital transformation initiatives, and innovation. Average IT spending by Latin American P&C insurers will be 2.7 percent of their direct written premium. Still, there is a group (represented by 23.8 percent of insurers) looking to invest 4 percent or more.

“IT priorities vary from one insurer to another, driven by the current situation, the strategy, and the IT budget they can allocate in a given year,” commented Mazzini. “In some countries, perspectives on the economy or inflation will affect the execution of their strategies.”

“Nevertheless, the survey surfaced trends that are aligned with Celent’s observations and discussions with market stakeholders. Core system replacement, digital transformation projects, and IT-enabled innovation stand out as the top priorities for CIOs,” he added.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

Methodology

3

Market Overview

4

 

Economic and Insurance Outlook

5

IT Business Trends

7

 

IT Spending

7

 

IT Spending Trends

8

IT Priorities

11

 

Core System Replacement or Modernization

13

 

Digital Transformation

16

 

Innovation / IT Enabled Innovation

18

IT Investments

20

 

IT Budget

20

 

IT Spending

21

 

IT Staffing

23

 

External Software and Hardware

24

Conclusion

26

Leveraging Celent’s Expertise

29

 

Support for Financial Institutions

29

 

Support for Vendors

29

Related Celent Research

30

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