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Introduction

This report identifies and analyzes the key trends that will impact the global insurance sector in 2020. Included in the discussion are findings from Ovum's ICT Enterprise Insights study.

Highlights

  • The insurance sector is responding to an uncertain global economy in 2020 by slowing expansion in ICT budgets. Reducing operational cost has emerged as the primary business goal for 2020, superseding the objective of growing revenue.

Features and Benefits

  • Analyzes trends in IT spending in the insurance industry.
  • Analyzes trends in IT spending in the insurance industry.

Key questions answered

  • What are the key business and technology drivers impacting the global insurance sector?
  • How do the key business and technology drivers vary by region, sector, and organization size?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for insurers
  • Recommendations for vendors serving the insurance sector

Cost reduction (re)emerges as a priority

  • Life insurers focus on taking out costs
  • P&C insurers pursue a range of strategies in uncertain times

Large insurers slow their ICT spend in 2020

  • Large P&C insurers hit the brakes on ICT spend
  • Smaller life insurers will drive ICT budget growth in 2020

Cost reduction is driving a significant realignment in functional ICT spend

  • Fraud detection is the investment priority for large insurers
  • Investment in IoT sees a boost in 2020
  • Cost reduction renews focus on legacy modernization
  • IFRS 17 continues to dominate the compliance agenda
  • Moving the back office to the cloud accelerates in 2020
  • Insurers spend on digital channels is slowing for the first time

Appendix

  • Methodology
  • Further reading
  • Author