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Global Insurance 2015 Top 10 Predictions: Perils and Prospects for the New Year

Global Insurance 2015 Top 10 Predictions: Perils and Prospects for the New Year

This IDC Financial Insights study presents our perspectives on the perils and prospects for the global consumer and commercial, life and non-life insurance markets for 2015. This document is part our annual thought leadership report series that explores specific themes, organizational attributes, and actionable strategies that will underpin insurers' successes as they chart new courses of growth for the new year. This list also allows financial technology vendors to more effectively prioritize development activities and reposition offerings to ensure synergistic partnerships with these insurers.

"In order to regroup and focus on sustainable, profitable growth, global insurers will need to confront multiple perils — ranging from reengineering or rebuilding legacy applications, to countering mounting insurance fraud — but also ensure that they are well-positioned to embrace growth prospects as these present themselves. Noting that insurers' strategic execution needs to be technology-enabled, we expect them to invest more rigorously in technologies, and project global IT investments rising to almost US$101 billion in 2015 as these support campaigns to boost efficiencies and innovation. Geographically, the emerging markets continue to shine with cumulated spend of US$19 billion rising at a three-year CAGR double that of mature nations," commented Li-May Chew, CFA, associate research director for IDC Financial Insights' Worldwide Insurance Advisory Service.

Please Note: Extended description available upon request.

In This Study
Situation Overview
Perils and Prospects for Global Insurers in 2015
Future Outlook
Our Top 10 Predictions for the New Year
Prediction #1: Global Insurance Technology Investments Will Reach Almost US$101 Billion in 2015 to Support Campaigns for Efficiencies and Innovation; Emerging Markets Continue to Shine, with Spend Expanding at Three-Year CAGR Double That of Mature Nations
Prediction #2: Legacy Modernization Will Gather Momentum with Zero-Tolerance for Infrastructure Failure and Demand for Reliability and Availability, Driving the Adoption of Modular Approaches to Upgrades and Replacements; Meanwhile, the Value Proposition of Cloud Will Continue to Strengthen
Engagements Delivered though the Cloud for Greater IT Agility
Prediction #3: Insurers Will Be Under Pressure to Enhance Processes Efficiencies and Reduce Cost for Core Operational Functions Such as Policy Administration, Underwriting, and Claims Performance; Focus Will Be on Transforming the IT Enterprise with Effective Reengineering Programs
Transforming the Insurance Enterprise with More Effective IT Environments
Prediction #4: Customers Will Be Increasingly Shaping the Policyholder-Insurer Relationship and Influencing Insurers' Customer-Centric Strategies; Marketing Heads Will Collectively Spend US$6.6 Billion in 2015 to Enhance the Total Customer Experience
Positive Customer Experience: The Defining Factor in Raising Insurers' Profitability
Prediction #5: Big Data Analytics Will Transition from Descriptive Applications to Predictive and Even Prescriptive Capabilities, with These Serving to Create Data-Driven Insights and Enhance Propositions to customers
Prediction #6: Insurers' Channel Outreach Will Be Increasingly Digitally Driven, Transforming Their Distribution Delivery with Up to a Third of Premium Sales Transacted via Internet-Enabled Computer or Mobile Devices and Social Networks by 2018
Trends in this New Digital World
Insurance on the Web
Influencing through Social Channels
Servicing on Mobile Devices
Prediction #7: Despite the Rising Popularity of Direct Distributors, Intermediated Channels Will Continue to Dominate at Up to 70% of Global Premiums; Insurers Focused on Agency or Broker Management Will Need to Inject These with a New Lease of Life
Prediction #8:As the Threat of Fraud Heightens with the Digital Revolution, Insurers Will Need to Spend US$3.3 Billion in 2015 Investing on Information Security and to Counter Financial Crimes
Sizeable Spending on Financial Crime Prevention
Prediction #9: Rigor on Risk Management Will Continue as Insurers Enter an Era of Re-Regulation; Risk and Compliance Are More Than Just Threats but Opportunities for Value-Creation That Insurers Have to Embrace Without Stifling Innovation
Regulatory Concerns on the Agenda
Looking Beyond Mere Compliance
Prediction #10: Potentially Game-Changing, Disruptive Technologies Stemming from the Internet of Things (IoT) Evolution Will Raise Insurers' Competitive Advantage, but Such Radical Innovations Need to be Closely Aligned with Strategic Objectives
Vehicular Telemetric Devices, Wearables, and Other Radical Possibilities
Essential Guidance
Learn More
Related Research
Table: Top 10 Predictions for Global Insurers, 2015
Table: Real Premium Growth Rates, 2013
Table: Global Insurance IT Spending, 2015–2018F
Figure: Customer Experience Rating for Insurance Carriers, 2014
Figure: The Biggest Challenges for Big Data Application
Figure: Rising Complexity in Insurance Purchase Involving Multiple Touch Points
Figure: Web-Related Leads Perform Better vis-a-vis Other Channels
Figure: U.S. Customers' Preferred Method of Interaction with Their Insurers
Figure: Intermediated vs. Direct Insurance Sales, by Region

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