Boston, Massachusetts, February 9, 2017 – Strategy Meets Action (SMA), a leading insurance strategic advisory firm, has just released a new research report: 2017 Insurance Technology Priorities and Spending. The report is based on a survey of North American P&C and L&A insurers and covers the state of the industry technology investments, the business drivers, and the ongoing plans for specific projects for P&C and L&A insurers. The report and insights are based on a survey of North American insurance business and technology executives and our ongoing observations from SMA’s advisory and consulting engagements with insurers. Key insights from the research include:
Insurer IT budgets are less aggressive than they have been in the past few years, rising an average of 2.7% over 2016.- Two-thirds (67%) of insurers are increasing IT budgets for product development/management, the most of any business area.
- A general trend in project investments is the shifting from replacements to more enhancements of existing systems, although plenty of replacements are still occurring, especially in commercial lines policy systems.
“The insurance industry is in transition – blending the traditional tech investments with new projects to support digital, InsurTech, and the connected world,” said Mark Breading, SMA Partner and report coauthor. “The shifting priorities of IT investments are reflective of this industry transformation.”
Insurers, InsurTech companies, solution providers, and media that are interested in learning more should contact Mark Breading at mbreading@strategymeetsaction.com or 614.562.8310.