Insurance Industry Scouting Report
Executive Summary
The Insurance Industry is a primary division of the Financial Services Industry which accounts for $169 billion of worldwide IT spend. Apart from the aggregate Financial Services Industry, Insurance would trail only second to Banking in terms of total IT spend. 2010 continues to be a challenging year for the Insurance Industry, although it has markedly improved from 2008-2009. The Federal Government has increased scrutiny on regulatory compliance, investment and asset allocation, and the transparency in both the brokerage and underwriting processes as a result of the Government’s $85 billion dollar bailout of AIG in September 2008. In addition to added pressure from the Government, the industry has experienced a wave of investment losses, a soft and competitive market keeping underwriting rates low, and loss in premium volume due to the economic crisis as clients reduced their risks. Property/Casualty insurers have slightly improved profits due to the lack of hurricanes which reduced claim volumes. However, the insurance market remains competitive and has not allowed insurers to raise premiums to pre-crisis levels. Insurers have therefore turned their attention to IT investments with immediate short term cost cutting benefits by replacing inefficient legacy systems.
The Insurance Industry is a primary division of the Financial Services Industry which accounts for $169 billion of worldwide IT spend. Apart from the aggregate Financial Services Industry, Insurance would trail only second to Banking in terms of total IT spend. 2010 continues to be a challenging year for the Insurance Industry, although it has markedly improved from 2008-2009. The Federal Government has increased scrutiny on regulatory compliance, investment and asset allocation, and the transparency in both the brokerage and underwriting processes as a result of the Government’s $85 billion dollar bailout of AIG in September 2008. In addition to added pressure from the Government, the industry has experienced a wave of investment losses, a soft and competitive market keeping underwriting rates low, and loss in premium volume due to the economic crisis as clients reduced their risks. Property/Casualty insurers have slightly improved profits due to the lack of hurricanes which reduced claim volumes. However, the insurance market remains competitive and has not allowed insurers to raise premiums to pre-crisis levels. Insurers have therefore turned their attention to IT investments with immediate short term cost cutting benefits by replacing inefficient legacy systems.
The Insurance Industry Scouting Report is a resource for executive and sales professionals in the technology and services industries. This Scouting Report is designed to:
- Segment the market into key types of target customers, and provide a brief overview of the differences between the segments
- Identify the right titles to approach within your target
- Make you smarter about your customer’s business so that you are comfortable with a business conversation
- Help you position your product or service to address the precise pain of your customer
- Provide you a conversation starter to help secure a meeting
- Give you the typical technology landscape within the industry so that you can come better prepared to the meeting
