Introduction
Insurers across the globe are reeling from one of the worst years on record. The arrival of a New Year will deliver little respite, however. While 2009 should not have the same surprises as '08 - for example, the collapse and government bailout of the once-venerable American International Group (AIG) - the year will be full of challenges.
Scope
*An overview of the market environment facing insurers in 2009
*view of the technology priorities for both life and non-life insurers
*Action points to help vendors in the insurance technology market
Report Highlights
*The greatest near-term difficulty facing both life and non-life insurers will be continued pressure on profitability as a result of weak demand and poor investment performance.
*In the coming year, insurers will seek ways to replace fixed costs with variable costs, which will drive adoption of alternative delivery models.
*If 2008 was the year that mismanaged risk culminated in disaster, then 2009 will be the year that risk takes center stage. In general, insurers will spend a great deal of time, energy and money on risk management.
Reasons to Purchase
*Learn about the trends in insurance technology in 2009
*Gain insight into where insurance companies are investing
Report Outline
VIEW
CATALYST
SUMMARY
ANALYSIS
Insurers must overcome near-term challenges while simultaneously positioning for the future
With fewer dollars, insurers will seek savings by adopting alternative delivery models
SaaS players have opened their platforms and datacenters, enabling a wave of innovation by independent vendors
Cost savings and the need to effectively absorb acquisitions will drive BPO
The lessons of the past will drive risk management and compliance investments
New risk models will need to be more robust and flexible
Regulatory changes will drive investments in document management, analytics and business intelligence
Increased demand for fixed annuities elevates the importance of portfolio management
Insurers are ready to invest in fraud detection
ACTIONS
Tailor message to account for insurers' priority shift
In today's unsettled regulatory landscape vendors should push insurers to be proactive
Vendors should embrace today's "buyer's market" as an opportunity to establish and strengthen long-term relationships
APPENDIX
Methodology
Further reading
Ask the analyst
consulting
Disclaimer
List of Figures
Figure 1: Insurance IT spend growth rates
Figure 2: Insurers' response to regulatory compliance
Figure 3: US sales of fixed and variable annuities in relation to the S&P 500
Figure 4: Insurance fraud and how it correlates with the economy
Figure 5: Fraud detection will be a key part of insurers' strategy in 2009
