Survey: 30%+ Insurance CIOs Plan Updates to Admin Systems
More than 30% of property and casualty insurers in the U.S. are actively looking to replace and enhance their policy administration systems, according to a survey published by research and advisory firm Novarica.
More than onethird of property and casualty insurers in the U.S. are actively looking to replace and enhance their policy administration systems, according to a survey published by research and advisory firm Novarica.
The 20page report, Budgets, Benchmarks, and Business Priorities for Insurer CIOs 2008: US Property/Casualty Edition, is based on a survey of 35 US property/casualty insurers. The report analyzes responses in a number of areas including budgets, staff composition, user satisfaction rates, and top priorities. It also analyzes the priority levels of over 40 insurance technology areas from agency management system interfaces to Web 2.0.
Key findings of the survey include:
- Overall IT budgets are holding steady at 3% of premium. External spending was a little over half of the average budget.
- Agent ebusiness delivered the best ROI over the past 18 months.
- 71% of respondents had the same top five priorities: policy administration system PAS replacement, ebusiness, PAS enhancement, underwriting, or supporting a new line of business LOB.
- Most insurers reported that predictive analytics across multiple areas was "under evaluation."
- A mixed picture for Web 2.0. Web 2.0 technologies like AJAX were actually being implemented by more than a third of respondents. However, Web 2.0 usercontent areas are "under evaluation," but with what the study called "a very low incidence of actual projects,"