According to a report done by independent industry analyst and consultancy firm Ovum, 53% of insurers in the Asia-Pacific region are eager to increase internal and external IT budgets for 2011/2012. This is 6% higher than in 2010-2011 period.
Ovum’s Insurance Technology Principal Analyst Barry Rabkin said, “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.”
The report also showed that 51% of Asia-Pacific insurers use business process outsourcing (BPO), while 56% use information technology outsourcing (ITO) for IT work such as network services, desktop management, IT security, applications development, and application management. Asia-Pacific insurers are also seen to cash in on the web 2.0 market place such as service-orientated architecture (SOA), software-as-a-service (SaaS), and rich Internet applications (RIAs).
Rabkin said outsourcing service providers need to closely watch those who are not confident about outsourcing and those who intend to bring certain processes back in-house. He added that this is a good time for an insurance company in Asia-Pacific, considering that the region is growing and insurers are willing to increase their IT budgets. They are also open to adopting new technologies such as the Cloud. In fact, 43% said they have deployed or are looking into the adoption of this technology.