IT spending in insurance to grow at 6% CAGR by 2024

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  • Improving customer experience is the keystone for insurers

  • 55% of insurers already have, or plan to develop a customer dedicated online portal

Despite the impact of COVID-19 on the global economy, the insurance sector is one of the largest business process optimization technologies investors.

According to a joint InfoBrief by IDC and Liferay, the IT spending in this segment will rise at a Compound Annual Growth Rate (CAGR) of 6 percent globally by 2024, reaching a market size of 135 billion USD.

This can be primarily attributed to the fact that 73 percent of the financial services industry is projected to maintain or increase IT spending compared to 2020.

The technologies that will drive this growth are related to optimization and customer centricity, the estimate reveals.

Among IT spending in the insurance sector, customer experience (CX) will have a 37 percent market share by 2024, rising at a CAGR of 17.5 percent to reach 50 billion USD.

On the other hand, providing an excellent and personalized experience to new digital customers is a must for any insurer to build loyalty and long-term relationships, with 60 percent of insurers saying attracting and retaining customers are their top priorities, according to the InfoBrief.

The study shows that 55 percent of insurers already have, or plan to develop a customer dedicated online portal.

The research also reveals that 60 percent of insurers have a plan to implement personalized communications for customers.

Market trends are shifting the entire business model of insurance, where advanced data analysis in real time helps to create new products on the fly and present them to customers as an added value.

IDC Research Spain is the premier analysis and consulting member of the IDC Group and a reference in the IT market of Spain due to the large experience of its analysts and its increasing presence in the digital transformation process of enterprises from all sectors.

Liferay makes software that helps companies create digital experiences on web, mobile and connected devices.

 

 

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