Filed Under:Life Insurance, Life Products

Insurers’ IT spending to hit $140.2 billion

Global IT spending by insurance companies will reach $140.2 billion by the end of 2013, according to a new report.

Celent, a research advisory unit of the management consulting firm Oliver Wyman, New York, published this finding in an executive summary of a new report, “IT Spending in Insurance: A Global Perspective.”

The report reveals that European insurers currently spend the most on IT, closely followed by North American insurers. Insurers in Europe account for 36.8 percent of global IT spending, while North American insurers spend 36.4 percent. Insurers in the Asia-Pacific region account for 19.9 percent, Latin America 3 percent, and the rest of the world accounts for 3.8 percent.

By 2015, the report adds, North American insurers are expected to overtake European insurers and account for nearly 38 percent of global IT spending.

Among all regions, Latin American insurance companies will experience the fastest growth, boasting IT spending increases of 7.7 percent in 2013 and a compounded annual growth rate (CAGR) of 6.7 percent from 2013 to 2015. Total spending in Latin America is expected to reach $5.1 billion in 2015.

IT spending in North America, the report notes, will grow to $58.5 billion in 2015, a CAGR of 4.5 percent from 2013 to 2015. IT spending in Europe will climb to $53 billion in 2015, a CAGR of 0.9 percent from 2013 to 2015.

The Asia-Pacific is expected to growth at a modest rate (3.7 percent CAGR). Spending in the region, the survey adds, will grow to $31.1 billion in 2015.

Of the total investment in IT in 2012, Celent estimates that 54 percent was dedicated to maintenance of existing systems.

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.