While economic indicators may suggest a financial recovery and the technology spend for the insurance industry as a whole should reverse for positive in 2010, I believe spending will still be relatively weak. Last year was marked by the industry’s sharp focus on core areas, which may be repeated this year as well. Traditionally the insurance industry has been dominated by legacy applications and traditional processing environments to a great extent as the industry has failed to catch up to its sibling in financial services vis-à-vis the adoption of new technology.
2010 presents an opportunity for insurers to revisit their strategies and reposition their value to customers. The learning out of the global financial meltdown is forcing insurers across the globe to look at growing the business, organization wide expense reduction and prioritizing operational effectiveness in their day-to-day operations. While there is value in investing in areas like policy administration, business intelligence (especially underwriting and claims analytics) and agent portals, ignoring disruptive technologies like Web 2.0/social networking, mobile computing, workflow, and straight through processing will be disastrous. Besides bringing in operational velocity, these areas help Insurers to remain competitive in the marketplace.Read more