Article Synopsis :
The “Harvey Nash/KPMG CIO Survey” is the largest IT leadership study in the world, with almost 4,500 respondents across 86 countries, representing over US$300bn of IT budget spend. This infographic shares insurance sector findings.
Insurers are under unprecedented pressure to drive out cost and boost organizational agility
Of note:
- Insurers are more pessimistic about IT budgets for 2018 relative to other industries, with 41% expecting a budget increase, and 23% anticipating a decrease, versus 46% and 18% respectively for other industries.
- Insurer Boards place a greater emphasis on developing new products and services (58%), and less of an emphasis on improving business processes (53%).
- Insurers are more likely to focus on creating a more nimble technology platform (59% vs. 52% for all industries), and reducing the amount of long-term planning (33% vs. 26%).
- Insurance companies report low overall effectiveness in their digital strategies, with just 15% describing them as very effective, compared to an all-industries average of 18%.
- Implementing digital, insurers face similar challenges as other industries, with change resistance and lack of specific digital technology skills topping the list.
- Insurers have invested much more heavily in digital labor (e.g., RPA, AI) than those in other industries, with more making both significant investments (12% vs. 9% for all industries) and moderate investments (25% vs. 14%).
- The role insurance CIOs play in innovation largely mirrors the all-industries average, with 26% leading innovation across the business, and 48% leading innovation only in technical/IT matters.
Not surprisingly, insurers consider themselves strong in managing risk and security, but weak in developing the right culture, utilizing data and analytics, and fostering innovation.
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Digital Insurer's Comments
We think the report’s two main conclusions are spot on:- Insurers are under unprecedented pressure to leverage technology to drive out cost of complexity and legacy, enabling growth with a focus on new products and services.
- Insurers are investing more heavily in digital labor (DL) than those in other industries for reasons that go beyond cost savings. DL can unlock productivity, organizational agility and customer responsiveness.
We might also add a third. Insurers, it seems, are waking up to the value of organizational speed—speed as the objective function, speed as the operating model, speed as the cultural bias. Fast eats big in the digital insurance jungle.
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About the Author
Tom Bobrowski
Head of North AmericaTom is responsible for developing the Digital Insurer in North America. Tom has over 20 years consulting experience, the last 10 focused on insurance, as a C-level strategist and problem solver in the areas of globalization of operations, technology transformation and change management. Tom is also the editor of the Digital Insurance Library section of the Digital Insurer.
