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Insurer IT Spending Up for 2020; Portals and Predictive Analytics Investments Are Common, Says Novarica Study of 100 Insurer CIOs

Insurer IT spending is growing for 2020 as insurers seek to improve speed to market, distributor service, and analytics capabilities, according to the 12th annual Insurer IT Budgets and Projects report from research and advisory firm Novarica. The report also finds that security is consuming a greater percentage of overall IT spending than in prior years.

 

"While IT budgets are inching higher across the industry, but demands for new business capabilities are soaring," said Matthew Josefowicz, president and CEO of Novarica. "Whether its improving speed to market, analytics-driven insights, or digital services, insurer technology leaders are being tasked with doing a whole lot more with just a little more budget."

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Among the key findings of the report are:

  • IT spending is increasing slightly for 2020. Averages vary by size and sector of company, but all are up slightly from last year. Most insurers are planning for increasing or stable budgets in 2020.
  • Business leaders want new capabilities and cost savings. Speed to market, distributor ease of doing business, and BI/analytics are the most common asks from IT, but more than a third of insurers also want reduced operating expenses just as much.
  • Digital and data/analytics account for more than half of "grow" and "transform" spending. More than 50% of insurers are planning for new systems or major enhancements in portals, business intelligence, and predictive analytics.
  • Most digital and analytics spending is still under the IT umbrella. Fewer than 30% of insurers report significant spending on digital or data/analytics outside of IT, and even for those insurers, the majority of spending is still inside the IT budget.

Novarica will present the results of the study in a webinar on October 17th at 1:00 PM ET. Interested attendees can pre-register at https://attendee.gotowebinar.com/register/8805781214387487491.

A preview of the report is available online at https://novarica.com/insurer-it-budgets-and-projects-2020/, and desk copies are available to qualified media. Please contact media@novarica.com or call Victoria Spitz at 833-668-2742 Ext. 130 for more information.

 


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