The insurance IT services market is pivoting from a labor-arbitrage model to a value-based, digital-first model. Insurers are reimagining their businesses by building a digital-enabled core to provide superior experiences to their customers and deliver sustainable operational efficiencies.

In this report we analyzed the insurance IT services demand side activity by examining the transactions across geographies, Lines of Businesses (LOBs), and digital scope of services. We have also studied the supply-side insurance ITS market and charted the size, growth drivers, and other major trends. We leveraged our proprietary Transaction Intelligence (TI) database, consisting of 800+ active IT services insurance contracts. Operational capability analysis of 25+ service providers through annually updated Request for Information (RFI) add supplier perspectives in addition to the demand themes outlined in the report.

This report corroborates the insurance industry’s accelerated adoption of digital technology themes such as analytics, blockchain, cloud, machine learning, and Internet of Things (IoT) to support their digital transformation agenda. These firms are also reimagining their IT services delivery model and the way they engage with third-party IT service providers.

SCOPE OF THE ANALYSIS

• Market segment: IT services
• Geography: Global
• Industry: Insurance
• Line of business: Life, Annuities, and Pension (L&P); Property and Casualty (P&C); and reinsurance

SOURCES LEVERAGED

• Everest Group’s proprietary database of 800+ active, multi-year ITO contracts within insurance industry (updated quarterly)
• Operational capability of 25+ insurance ITO service providers (updated annually through service provider RFIs)

CONTENTS

The research focuses on insurance industry with primary focus on demand- and supply-side market trend. The content of the report includes:

• Size and growth – Characteristics of IT services deals signed by insurance enterprises for 2014-17 with analysis on deal size and duration and future growth expectations for the industry
• Scope characteristics – Analysis of Applications Services (AS) and Infrastructure Services (IS) subfunctions, insurance LOBs, geographic scope and digital technology themes. A detailed study of risk and compliance services, platform services, and automation services is outlined in the report
• Deal characteristics – Insights into deal signing characteristics for deal origination, scope, bundling, pricing model, and engagement models
• Growth outlook - Analyst estimates and supplier expectations of insurance enterprise IT spending across lines of business, geographies, and application services subfunctions

Membership(s)

Insurance - IT Services (ITS)