Mobility apps, business intelligence among top tech project priorities for P&C carriers

Mobility applications will be a top technology project area for personal lines property and casualty insurers in 2014 and beyond, while predictive analytics is the top IT project priority for commercial lines carriers, suggests a recent report from Strategy Meets Action.

Boston-based SMA released Jan. 23 a report titled “2014 Insurance Ecosystem: Insurer Technology Spending, Drivers, and Project.” The report is based in part on responses from 100 insurers surveyed.

“Mobility applications and (business intelligence/analytics) are by far the top technology project areas for personal lines insurers,” according to the report.

SMA, which provides research and consulting for insurers and information technology vendors, listed the top five technology and tools projects for P&C personal lines, P&C commercial lines, and life and annuities in priority order.

In addition to survey data, the report is also based on interviews, secondary research and the experience of SMA professionals working with clients.

While mobility applications was the top technology and tools priority area in P&C personal lines, business intelligence ranked second while predictive analytics was third. In commercial P&C, the top three, in order, were predictive analytics, business intelligence and big data.

“For insurers, the data points and insights presented are useful for tracking IT spending against industry trends, examining priorities, and monitoring the pulse of technology investments,” SMA stated of the report. “For IT solution providers, the data and accompanying observations on insurers’ spending patterns and buying behaviors yield useful information for setting product development roadmaps and refining marketing strategies and priorities.”

Based on its research, SMA also noted that this year, 63% of insurers plan to increase their IT budgets, while 69% plan to increase them between 2015 and 2017. One in four reported their IT budgets will remain flat in 2014, while 12% indicated they will decrease.

“Insurers continue to increase investments in all areas of the business across the value chain,” SMA stated. “Significant activity is underway in the front office, middle office, and back office. Investments may be reflected in major projects to enhance or replace the key business system for a given area (such as underwriting), or in technology projects such as mobile or analytics focused on that business area.”