Wednesday, August 10th, 2011
Melbourne, August 10, 2011. Asia-Pacific insurers are planning to increase their IT budgets in 2011-2012 thanks to the economic growth in the region, according to Ovum.

In its latest report* the independent technology analyst finds that 29% of Asia-Pacific insurers expect that the IT budgets for both external and internal IT will significantly increase (at more than 6%) and that over 53% are looking to increase IT budgets in 2011/2012, a 6% increase on the 2010/2011 period.

Barry Rabkin, Ovum’s Insurance Technology Principal Analyst, commented: “Coming out of the post-financial crisis economic situation, the Asia-Pacific region is in a growth mode. Although Asia-Pacific insurers are struggling with having more insurance business operating systems than they want, they are planning to increase IT budgets in 2012.”

In addition to increasing their IT budgets, 51% of Asia-Pacific insurers are comfortable using outsourcing such as business process outsourcing (BPO), and 56% are using IT function outsourcing (ITO) for five of the 10 IT functions in the survey: network services, desktop management, IT security, applications development, and application management. Compared to their peers in North America and EMEA, Asia-Pacifc insurers are more proactively chasing the web 2.0 marketplace by choosing service-orientated architecture (SOA), software-as-a-service (SaaS), and rich Internet applications (RIAs).

Rabkin added: “Outsourcing vendors should also focus their efforts on the insurers that are uncomfortable using BPO or those planning to bring some processes back in-house.”

Interestingly, for an industry slow to adopt new technologies, 43% of the Asia-Pacific insurers surveyed have deployed or are experimenting with private cloud. The same can be said for business intelligence (BI), where Asia-Pacific insurers are increasingly leveraging BI tools to target customer retention (86% rated this as the most important driver for BI usage).

“A region in growth mode, expanding IT budgets, and an increasing willingness to deploy newer technologies all add up to it being an exciting time to be an Asia-Pacific insurance company,” concluded Rabkin.

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More detailed data is available upon request.

* Business Trends: Asia-Pacific Insurance Technology Investment Strategies (Customer Focus)

Survey was undertaken between March and May 2011 via telephone interviews in Asia-Pacific. There are 49 respondents from Australia/New Zealand, India, China, Hong Kong, Korea, Taiwan. The insurance segments are non-life insurers, life insurers and multi-line insurers.

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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms, and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.
Tanisha Kaul
P: +61 (0)3 9601 6723


Asia-Pacific insurers are planning to increase their IT budgets in 2011-2012 thanks to the economic growth in the region, according to Ovum.



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