Celent issued a report earlier in the year providing global perspective on IT spending in the insurance industry.
The Digital Insurer was provided a copy of the report and has summarised some of the key findings from an Asia Pacific perspectives:
- By the end of 2013 total IT insurance spending life and non life will be just short of US$30 billion – with growth of 6% in each of 2013 and 2014 forecast
- Life & health accounts for just less than 2/3rds of total expenditure
- Spending in external software and services shows the highest growth rates at over 8% in both 2013 and 2014 as insurers continue to realise that external companies can offer better solutions than are available in-house
- Just over one third of IT spending in Asia is on new investments with the balance on maintenance
Celent have identified 3 key areas for investment – process automation, agency distribution & new digital channels. see table below for details.
For further information and a copy of the full report please visit the Celent site.