Insurers with a worldwide presence are set to spend over $100 billion this year on IT. That will gladden the hearts of vendors.
This is the view of IDC Financial Investments, which says that the number is an increase of 4.4 percent compared to 2014.
The global insurers want to spend this money to boost “efficiencies”, meaning that they will invest in data warehousing, claims and policy administration systems.
Li-May Chew, lead director for IDC’s Financial Insights division, said that the insurers need to act.
She said: “Replacements or refreshes are required as legacy IT systems become increasingly complex, inflexible and archaic, to the point of negatively affecting technology integration and interoperability.”
In other words, they’re out of date.
The insurers want to modernise their systems and use the cloud to cut costs – and customers want the insurers to do that too.
They want to make sure their customers use PCs, mobile devices and social networks.
They need to protect themselves against fraud.
Li-May didn’t say which vendors would benefit from the increased spend – but the emphasis is on mobile computing, cloud services, social networking and big data analytics.
So the usual suspects – that is to say IBM, HP, Dell, Oracle and others will be sitting patiently waiting for the phone to ring so they can pick up the orders.