Revealed – insurers’ tech priorities for 2023


“Enhancing the client expertise (CX) ranked larger within the survey this yr than extra strategic focuses, comparable to rising income or new merchandise/providers growth to assist transformation,” mentioned Kimberly Harris-Ferrante, distinguished VP analyst at Gartner. “The financial stressors of the approaching yr are making corporations refocus and shift instructions to fill gaps which have existed for a few years.

“Insurers want extra buyer knowledge, together with extra behavioral and preferential knowledge, to successfully execute digital enterprise methods aimed toward cross-sell/upsell, panoptic personalization, dynamic buyer engagement and income development by new merchandise/service.”

Shifting priorities

The survey discovered that greater than half of CIOs are growing expertise investments this yr, with the commonest areas of funding being utility modernization, cybersecurity and data safety, and BI/analytics.

New calls for, comparable to driving new buyer expertise or the shortcoming to do straight-through processing, are spurring a stronger give attention to utility modernization, particularly in core methods, Gartner discovered. New digital calls for are additionally throwing gentle on the necessity to make foundational enhancements, comparable to stronger safety, that insurers haven’t adequately invested in.

Learn subsequent: What does 2023 hold for insurtechs?

“In 2023, creating the correct technical basis for agility and openness shall be focused, together with changing legacy property that create a expertise and funding drain on the group,” Harris-Ferrante mentioned.

Digital expertise funding

The survey discovered that the majority insurers want to scale back expensive infrastructure funding, opting as an alternative for cloud technology. Solely 31% of insurers mentioned they aren’t lowering funding in 2023.

The survey discovered that insurers had blended emotions about their tech investments. Many insurers who targeted on rising innovation mentioned their digital tech investments exceeded worth expectations. Greater than half of insurers who targeted on operational excellence mentioned the identical. Nonetheless, nearly all of insurance coverage CIOs mentioned they both simply met or have been behind their worth expectations comparable to enhancing buyer expertise and growing income.

“IT investments should assist the three trade priorities: response to financial pressures, the expertise dilemma and provide chain challenges,” Harris-Ferrante mentioned. “Business situations are driving insurance coverage CIOs to shift their investments to match these enterprise wants.”

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