Top 10 Areas of Data Investment for Life/Annuity Insurers in 2013
June 17, 2013 11:48 AM
Minerva Studio - Fotolia
The average life/annuity insurer is spending about 11 percent of its IT budget on data and analytics in 2013, which is up from the 8.5 percent life/annuity insurers were budgeting for data and analytics in 2012. Also, 87 percent of life/annuity insurers are planning increases in data and analytics spending through 2015 none are planning on decreasing spending, as the remaining 13 percent expect spending to remain flat. The following represents how many life/annuity insurers, out of the 47 surveyed for SMA's research, are investing in data and analytics for specific business operations. Also included is the breakdown of how many large insurers are making the investments versus smaller ones, as well as how many insurers were making the same investments last year.
Creativa - Fotolia
1. New Business/ Underwriting 75%
Life/annuity insurers more than $1 billion: 83% Life/annuity insurers less than $1 billion: 64% Total investment in 2012: 60%
Nagy-Bagoly Arpad/Arpad Nagy-Bagoly - Fotolia
2. Product Development 66%
Life/annuity insurers more than $1 billion: 72% Life/annuity insurers less than $1 billion: 57% Total investment in 2012: 66%
Rudie - Fotolia
3. Marketing 56%
Life/annuity insurers more than $1 billion: 50% Life/annuity insurers less than $1 billion: 64% Total investment in 2012: 48%
LUCKAS Kommunikation/LUCKAS - Fotolia
4. Distribution Management/Sales 50%
Life/annuity insurers more than $1 billion: 56% Life/annuity insurers less than $1 billion: 43% Total investment in 2012: 50%
rvlsoft - Fotolia
5. Claims/Payout 50%
Life/annuity insurers more than $1 billion: 56% Life/annuity insurers less than $1 billion: 43% Total investment in 2012: 52%
varijanta - Fotolia
6. Policy Servicing 28%
Life/annuity insurers more than $1 billion: 17% Life/annuity insurers less than $1 billion: 43% Total investment in 2012: 26%
S.John - Fotolia
7. Enterprise Services 22%
Life/annuity insurers more than $1 billion: 17% Life/annuity insurers less than $1 billion: 29% Total investment in 2012: 14%
Joachim Wendler/Joachim Wendler - Fotolia
8. Billing 16%
Life/annuity insurers more than $1 billion: 6% Life/annuity insurers less than $1 billion: 29% Total investment in 2012: 7%
Mopic/Mopic - Fotolia
9. Asset/Investment management 15%
Life/annuity insurers more than $1 billion: 11% Life/annuity insurers less than $1 billion: 4% Total investment in 2012: 10%
2jenn - Fotolia
10. Reinsurance 0%
Life/annuity insurers more than $1 billion: 0% Life/annuity insurers less than $1 billion: 0% Total investment in 2012: 7%
rnl - Fotolia
Top 5 challenges to capitalizing on analytics:
1. Data quality and completeness 2. Lack of an overall strategy for data 3. Legacy core systems 4. Lack of overall priority or funding 5. Data accessibility