With all this new data on spending and budgets at hand, I thought it would be fun to revisit my August 1 column at Insurance Networking News, 5 Predictions, 5 Guidelines for 2013 IT Budgets. Here’s what we predicted this summer:
1. Budgets grow modestly or at worst hold steady.
2. More core systems projects.
3. More business intelligence and analytics projects.
4. More agent/customer experience projects.
5. Limited investment for social and mobile, but more low-cost pilot projects.
Given the overall vectors of the insurance IT world for the past few years, I suppose it didn’t really take Carnak the Magnificent to hit on those five areas. But every one was confirmed by the survey data:
1. The majority of respondents reported modest budget increases or flat budgets.
2. 35% of respondents reported being in the middle of a core policy administration system replacement or planning to start one 2013, and another 18% are planning major enhancements to their core policy administration systems.
3. Business intelligence is the top priority business capability for P&C insurers, and overall more than half of insurers are replacing or significantly enhancing their BI capabilities.
4. Nearly half of insurers are replacing or significantly enhancing their agent portals, and distributor ease-of-doing-business is the top priority for large life insurers.
5. 10-20% of insurers have mobile or social media pilots underway, but fewer have extensive deployments today.
For more, including a free downloadable summary of the 27 page report, see US Insurer IT Budgets and Projects