Insurance firms continue to invest in technology in order to fuel growth, according to a Celent report which looked into IT spending in the insurance industry.
The research and advisory firm’s report, IT Spending in Insurance: A Global Perspective 2016, analysed IT spending trends across North America, Europe, Asia-Pacific, and Latin America.
The study found that European and North American financial institutions currently account for 74.6% of global IT investments by insurance companies. Firms in the Asia-Pacific region account for 18.7%, Latin America accounts for 4%, and the Middle East / Africa / Commonwealth of Independent States account for the balance.
“As with 2015, IT investment continues to be targeted towards profitable growth, with IT investment continuing to rise,” said Jamie Macgregor, senior vice president of Celent’s insurance practice and co-author of the report. “However, unlike last year, there is levelling off of expenditure in some territories owing to the perceived fragility of the macroeconomic environment.”
Karen Monks, an analyst with Celent’s and co-author of the report, added: “Low interest rates in developed markets continue to take their toll. Bright spots remain with the continued investment in digital across both P&C and Life, and core systems transformation to drive improved market responsiveness.”
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