gartner top 10 technology trends impacting life and pc insurance cios in 2014

Download Gartner Top 10 Technology Trends Impacting Life and PC Insurance CIOs in 2014

Post on 19-Jan-2016

613 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    G00260600

    Top 10 Technology Trends Impacting Life andP&C Insurance CIOs in 2014Published: 14 April 2014

    Analyst(s): Juergen Weiss, Kimberly Harris-Ferrante, Steven Leigh, Jeff Haner

    Gartner has identified the 10 technology trends that will be most relevant tolife and P&C insurance IT leaders this year. Insurance CIOs should use thisresearch to assess the maturity and business value of technologies andbetter advise their business users.

    Key Findings Insurance CIOs need to advise their business peers on the business value and use of new

    technologies to support critical business priorities such as customer experience, operationalefficiency and improved profitability.

    Expanding their technology competencies will be mandatory for insurance IT leadersdeveloping long-term IT strategies that contribute to their companies' value propositions andgenerate additional business.

    Legacy IT systems and business processes, inadequate IT budgets and lack of critical IT skillswill be among the inhibitors for insurance IT leaders evaluating and selecting disruptivetechnology trends.

    RecommendationsInsurance CIOs:

    Map your 2014 IT portfolio against the technology trends outlined in this research, and analyzehow well your current IT investments can support running, growing and transforming thebusiness.

    Assess the impacts of these trends on your company-specific internal productivity andcustomer experience. Evaluate how difficult it would be for your company or your ITorganization to generate real-world return on investment (ROI) from the adoption of thesetechnologies.

  • This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    Identify the potential business and technology risks these technology trends present for yourcompany. Develop measures to mitigate these risks that are aligned with the company's riskappetite and risk threshold.

    Table of Contents

    Analysis..................................................................................................................................................2

    Overview.......................................................................................................................................... 2

    Top 10 Technology Trends Impacting Life and P&C Insurance in 2014.............................................3

    Legacy Modernization.................................................................................................................3

    Cloud Computing....................................................................................................................... 5

    Risk Management and Compliance Solutions............................................................................. 7

    User Experience Technologies....................................................................................................9

    Event-Driven Architectures and Real-Time Operational Intelligence........................................... 10

    Mobile Applications and Technologies...................................................................................... 12

    Social and Collaboration Technologies..................................................................................... 14

    Sales Force Automation and CRM Tools.................................................................................. 16

    Internet of Things......................................................................................................................18

    Advanced Analytics and Business Intelligence.......................................................................... 20

    Analysis

    Overview

    Gartner has identified the 10 most important technology trends for the life and property andcasualty (P&C) insurance industry for this year to help insurers' IT leaders assess and prioritizecritical technology options (for a related business-oriented discussion, see "Top 10 Business TrendsImpacting Life and P&C Insurers in 2014"). The technology trends described in this document arepresented in no particular order, and the sequence is not intended to imply any prioritization.Insurance CIOs will find this list useful as they reposition themselves and their IT organizations toprovide more technology guidance to their companies' business leaders. Articulating the businessopportunities of these technology trends will enable insurance CIOs to move beyond purely tacticaland operational IT roles.

    We first published this document type in 2013, and we have made changes to the technologiesincluded in this list since that time:

    We excluded metadata architectures and frameworks from this year's top 10 trends, becausethis is already a fundamental aspect of many of the other trends discussed here.

    Page 2 of 23 Gartner, Inc. | G00260600

  • This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    We added sales force and customer relationship management (CRM) tools, in a decision thatreflects life and P&C insurers' increasing focus on customer centricity and agent productivity.

    Next-generation portals have been redefined as user experience technologies to better expressthe strategic direction of many IT projects in the insurance industry, as well as to show the valueof improved usability across all channels, not just portals.

    Social media has been replaced by social and collaboration technologies, because we havenoted a stronger focus on facilitating internal and external collaboration.

    Telematics and sensor-based technology have been replaced by the Internet of Things,reflecting the expanding connections of physical objects, as well as emerging use cases in theinsurance industry (for example, "wearables" and smart home technology).

    Big data has been replaced by advanced analytics and business intelligence (BI), given that thecurrent adoption of true big data systems by life and P&C insurers remains somewhatimmature. More real business value is generated by advanced analytics and BI.

    Mobile technology has been redefined as mobile applications and technology, taking intoconsideration the widely varied technologies from apps to different mobile platforms, such asmedia tablets that are being adopted.

    Event-driven architectures and real-time operational intelligence, legacy modernization, cloudcomputing, and risk management and compliance technologies remained unchanged on our top 10list, because we continue to see significant client interest in these technology trends.

    Top 10 Technology Trends Impacting Life and P&C Insurance in 2014

    Legacy Modernization

    Analysis by Juergen Weiss and Jeff Haner

    Trend Description

    Legacy modernization is a broad term used to describe the continuous evolution of IT applicationsas part of the software life cycle, including system modernization and replacement. Gartner's IT KeyMetrics Data for 2014 shows that insurance CIOs spend an average of 61% of their annual ITbudgets on running the business (see "IT Key Metrics Data 2014: Key Industry Measures: InsuranceAnalysis: Current Year"). In this highly resource-constrained environment, legacy modernization isnecessarily a mission-critical concern. Legacy modernization frees up resources for other high-priority investments that have the potential to grow and transform the business. Insurers worldwideclearly understand the importance of modernization. The Gartner 2014 CIO Survey showed thatinsurance CIOs considered legacy modernization one of their most important technology priorities

    for the coming three years.1 And a 2013 survey of U.S. life and P&C insurers found that the

    respondents considered legacy modernization "very critical."2

    Gartner, Inc. | G00260600 Page 3 of 23

  • This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    This research note is restricted to the personal use of carmen.davids@sanlam.co.za

    The 2013 U.S. survey showed that the three primary drivers for legacy modernization are the needto improve:

    Services for customers or business partners

    The level of operational efficiency

    The time to market of new products and services

    Gartner research and client interactions indicate that these drivers are universal, and can beidentified as reasons for legacy modernization in other geographies as well. There is also a widerange of other company-specific drivers for legacy modernization in the insurance industry,including the need to mitigate system or vendor risks; the desire to reduce costs particularlymaintenance costs; the shrinking pool of workers with the skills to maintain legacy systems; andpressure to meet regulatory compliance requirements.

    Insurance CIOs have different options for modernizing legacy applications, including systemmaintenance and replacement. More than 80% of the respondents to Gartner's 2013 U.S. survey,for example, preferred to mitigate the risks of legacy modernization by gradually replacing individualapplication components, or running old and new systems in parallel for a certain period of time. Weare also seeing several code conversion and platform migration scenarios, especially in caseswhere legacy applications still meet certain business requirements or the costs of new packagedimplementations are too high. Technologies such as enterprise service buses and business processmanag