Brighter outlook for insurance CIOs regarding IT area: Celent

Chief information officers of insurance companies in the United States expect to see revenue growth in the area of information technology, plus a strengthened role for IT in the business, according to Celent’s annual CIO report, 2012 US Insurance CIO Survey: Pressures, Priorities – and Innovation.

The new report shows half of the survey respondents project revenue growth of 4% or more. The CIOs also indicated IT is being asked to take on an expanded role in business growth and profitability, with the top two business goals that IT must support listed as “increasing profitability” (24%) and “expense reduction” (24%).

“Some of the technology themes are familiar: replacement of core policy administration and claims systems. Others are new: the emergence of new business/underwriting as an area with new project significant spending,” says Donald Light, senior analyst with Celent’s Insurance group and author of the report. “While not accounting for a large portion of current spending, some use of several emerging technologies is found in half or more or insurers surveyed, especially social media and mobile apps.”

In long-term projections to 2015, the report notes that the most significant growth in IT will be in mobility apps for customers and the use of social media for underwriting, internal groups and claims.