May 2020 – Most insurers have made comparatively small adjustments to their 2020 technology plans and budgets during the second quarter due to the pandemic. Overall budgets are currently projected to shrink by less than 10%, and priorities are shifting to prioritize digital capabilities, operational efficiency, and reduced operational risk. Fewer than 25% of insurers are cancelling or delaying strategic projects in most areas.

This report analyzes the results of a survey of more than 100 insurer CIO members of the Novarica Insurance Technology Research Council.

Key Points and Findings

• While most insurers are revising their plans, most revisions are not drastic. Most budget cuts are in single digits, and most insurers are reprioritizing rather than cancelling projects.
• Business priorities are shifting from speed to market to channel and resiliency. Insurers are worried less about product competitiveness and more about sustainability.
• Life insurers have a new urgency around digital. 65% of life insurers are prioritizing or accelerating their digital initiatives to adjust to a completely virtualized business environment.