Total insurance IT spending across North America, Europe, Latin America, and Asia-Pacific will grow to $162.1bn in 2014, with continued growth to $176.7bn in 2016-a CAGR of 4.4%. This upward shift is above last year’s estimates and is a result of the cautious upturn in the global economy.
In the report "IT Spending in Insurance: A Global Perspective", Celent analyzes IT spending trends across North America, Europe, Asia-Pacific, and Latin America. The report compares and contrasts the direction of IT spending trends. The growth is spread across the regions at various levels, with North America and Latin America seeing the highest growth rates.
European and North American financial institutions currently account for 74.5% of the global IT investments by insurance companies. Firms in the Asia-Pacific region account for 18.3%, Latin America accounts for 4.2%, and the Middle East/ Africa/ Commonwealth of Independent States account for the remaining 3%.
“Across the world, we are seeing a return to investing in growth. Digital distribution and customer acquisition are hot topics as insurers look to keep the cost to serve low,” says Jamie Macgregor, SVP of Celent Insurance and coauthor of the report. “Not all regions are progressing at the same rate, however. The Americas and Asia are growing strong, but the outlook for Europe is still mixed.”
“Although investment returns are still low, insurers need to focus on improving the core business result,” adds Karen Monks, Analyst in the Insurance practice and co-author of the report. “Simply put, this means investing in technology to attract clients, retain clients, and maximize the underwriting result.”
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