Indian insurance companies are expected to spend 130.4 billion rupees on IT products and services in 2015, a 10.4 percent increase over 2014, according to Gartner, Inc. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.
“Gartner’s 2015 CIO Agenda survey showed the top three technology priorities for Indian insurance CIOs this year are mobility, business intelligence and analytics, and digitalization/digital marketing – in that order,” said Derry Finkeldey, research director at Gartner. “The big story here is around loyalty amongst agents and insurers who are taking a mobile-first strategy in their efforts to foster it.”
Growth in investment will be highest in the burgeoning health segment, but growth in the much larger non-health segment is not far behind – driven by necessity. The largest spending segment in 2015 is IT services, which at 46.3 billion rupees is 36 percent of the total market. Business process outsourcing(BPO) is expected to grow the fastest at 22.8 percent in 2015 to become a five billion rupee market.
Further information on insurance sector IT spending is available in the Gartner report, ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019, 1Q15 Update’, available at https://www.gartner.com/doc/3028817. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.