As the dust settles on the subprime storm, Celent expects insurers to continue along the investment lines of their 2008 budgets. There remain compelling reasons to tackle legacy systems and improve the overall interaction experience of customers and brokers. A new report from Celent, Insurance CIO Pressures, Priorities, Projects, and Plans in 2008: European Survey Results, provides an information resource about behaviours, initiatives, challenges, and priorities for 2008 at European insurers.
Celent expects 2008 to be a year of continued investment in new applications and solutions. Insurance companies have seen enough examples of the value delivered by technological innovation to keep the spending spigot turned on. However, they will also keep more of an eye turned toward the general economy as 2008 unfolds.
"Insurance CIOs maintain a focus on streamlining operations," says Catherine Stagg-Macey, senior analyst with Celent’s insurance group and author of the report. "This business driver informs a real determination to take on the challenge of core legacy systems."
Ms. Stagg-Macey continues, "Overall, the industry has had some good years recently, providing them with the cash and momentum to tackle some serious IT issues. 2008 will be about getting the house in order."
Some of the other key findings of the survey show continued investment in Web services and SOA in order to improve integration efforts, especially in the area of new business; and the importance of supporting core system replacement projects with a solid business rationale. Vendors face a corresponding set of issues.
The 41-page report covers a broad range of areas, including detailed budget breakdowns, staffing plans, and ratios. The report contains 29 figures analysing survey responses.