About IT Spending by Insurance in the US
The insurance industry in the Americas is highly competitive and regulated in nature. The insurance market in the US is influenced by economic and political conditions of the country. GDP is one of the major factors that can influence the growth rate of the insurance industry. Currently, the economy of the US is stronger than rest of the world (ROW). The upcoming Presidential election in the US might impact the insurance business in the US. We forecast the formation of new government in the US will lead to changes in policies in the financial sector of the country. Insurance firms in the US face intense competition, tight market regulations, and high customer expectations. These firms are under pressure with rising operational complexities, shrinking profit margin, regulatory changes for IT security, market consolidations, and fraudulent policy claims. Insurers also need to replace their traditional IT systems and obsolete technologies to remain competitive in the domestic as well as international market. Insurers seek multi-channel marketing strategies due to increased number of digital consumers using smart devices to explore insurance services
Technavio’s analysts forecast the IT Spending by Insurance in the US to grow at a CAGR of 3.3% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the IT Spending by Insurance in the US for 2016-2020. To calculate the market size, we consider revenue generated from the following types of IT spending in insurance sector of the US.
Technavio Announces the Publication of its Research Report – IT Spending by Insurance in the US 2016-2020
Technavio recognizes the following companies as the key players in the IT Spending by Insurance in the US: Accenture, CSC, Fiserv, Guidewire Software, and Oracle.
Other Prominent Vendors in the market are: Andesa, Cognizant, EXL Service, FIS, Genpact, Majesco, Microsoft, Pegasystems, SAP, and StoneRiver.
Commenting on the report, an analyst from Technavio’s team said: “A current trend in the IT spending market is the intensification of cloud computing. The adoption of cloud computing solutions in the financial industry in the US has increased to implement flexible, scalable, and cost-effective IT solutions. Cloud-based solutions help insurance firms to decrease their total cost of ownership by reducing the upfront installation costs of IT systems. Firms subscribe to cloud-based solution to shift from on premise to SaaS-based deployment model. Insurance firms shift to cloud-based IT infrastructure model to increase flexibility in IT resource utilization and attain cost-effectiveness through pay per use pricing model.”
According to the report, a key growth driver is the popularity of usage-based insurance. Usage-based insurance (UBI), also known as pay as you drive, is an innovative insurance model deployed in the auto insurance industry. UBI policies require advanced communication systems, connected devices, and telematics solutions to monitor the behavior of vehicle drivers and accordingly calculate premium amounts. Software firms offer telematics, ICT, and IoT solutions for auto insurance firms to provide UBI policies. UBI policies integrated with analytics solutions help auto insurers to calculate premiums accurately by analyzing numerous factors such as vehicle speed, vehicle position, changes in acceleration, and mileage.
Further, the report states that one challenge that could hamper market growth is the need for unceasing innovation. Vendors have to add products and services frequently to keep up with dynamic market conditions. "
Accenture, CSC, Fiserv, Guidewire Software, Oracle, Andesa, Cognizant, EXL Service, FIS, Genpact, Majesco, Microsoft, Pegasystems, SAP, StoneRiver.