CIOs are finding that old methods of IT governance need updating as insurers expand investments in cloud, digital, data, and Agile. This changing technology environment is pushing insurers to adopt IT governance models that IT and other business units can adhere to—transparent processes of accountability and continuous communication.
Effective IT governance projects align with the business’s strategy and goals; this is true regardless of size. This will necessarily involve transparency to demonstrate that the process only approves well-qualified, high-return projects that support business strategy. Yet project governance measures that focus only on time, resources, and cost do not convey the value that IT delivers to the insurance carrier. Insurer executives care about premiums, expenses, and losses, and profitability is a focal point of well-executed IT governance.
Organizationally, sound IT governance initiatives engage executive leadership. Involvement of the rest of the enterprise is equally important, along with communication of goals, value, progress, and outcomes. Success also hinges on allowing the financial plan to mature in parallel with the project and subject matter experts to vet budgetary and project risk.
New technology and delivery models alone won’t suffice; insurers are also finding the ability to measure impacts on business strategy and objectives to be crucial. Modern IT governance processes acknowledge these new realities while efficiently allocating IT investment dollars.
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