ICT adoption in insurance sector to rise
The ICT adoption in the insurance Industry in India is expected to witness a dynamic growth in the coming years, according to a recent report by research firm Netscribes. According to the study, ICT spending by insurers in India stood at Rs 76.17 billion in 2011 and is anticipated to grow at a CAGR of around 14 percent till 2015.
The report stated that the growing demand for insurance products and services can be attributed to the growing complexities arising from huge customer base. The rising competition in the industry has prompted enterprises in this segment to invest in IT and rely on various technology driven innovations. Some of the key areas in which insurance companies are investing include customer service, data analytics and process management.
“With the ongoing growth in customer base and daily transactions, insurers in India are gradually shifting their focus towards the adoption of ICT oriented tools, services and platforms. Till now, the ICT adoption in insurance industry has occurred in a phased manner, wherein it has exhibited a steady but impressive growth rate over the years,” said Kalyan Banga, Product Manager at Netscribes.
He added that in the current ICT landscape within the insurance industry, there is also a major competition among ICT vendors. The report indicated that the type and attributes of the solutions that experiences the most demand within the insurance sector have also changed over the years.
“Primarily, enterprises in this segment look for better customer services. Analysis of colossal amount of data and information along with generating insights from these data are also experiencing exponential surge in demand. Advancement in the field of mobile technology and the immense popularity of social networking sites has also grabbed the attention of industry significantly,” noted Banga.
The report indicated that IT spending basically comprises the costs associated with hardware, software and services while the telecom services include support and services. There is a technology transition taking place that moves from a support function to something that drives a the enterprises’ core capabilities, CIOs in this sector have to keep reinventing with a wide variety of ICT projects and application.
Banga said as of now, the trend in the sector is to target the customers, facilitate seamless flow of data within the company and reduce the total cost of ownership.
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