MANILA, Philippines - While insurers still have the tendency to look inwards rather than outsource, the marketplace is growing increasingly challenging and insurance carriers in the Asia-Pacific are becoming more cognizant of the benefits of outsourcing technology in order to compete in today’s challenging marketplace, according to the International Data Corp. (IDC) Financial Insights’ latest report.
IDC noted that insurers in the region have been laggards in information technology (IT) spending, but the economic malaise has driven home the need to create a more dynamic business framework through the assistance of technology.
The study assessed prominent insurance technology vendors in Asia-Pacific and the products and services they provide.
The report casts the spotlight on three enterprisewide technology firms: CSC, IBM and SAP, and six insurance technology (InsTech) firms: 3i Infotech, Cognizant, EAB Systems, eBao Technologies, Mastek and Perot Systems.
According to Li-May Chew, senior research manager for IDC Financial Insights Asia-Pacific, each company has a unique value proposition, offering nuances in products, services and solutions.
“For instance, CSC has a large installed base with commendable end-to-end reach, while we applaud IBM’s high commitment level to the industry and vast ISV ecosystem of business partners. Amongst the InsTech organizations, 3i Infotech has a laudable front-end solution that addresses the full spectrum of insurance functions, and eBaoTech is viewed as being an aggressive company that has excelled at building brand awareness,” Chew said.
IDC pointed out that insurers exploring IT outsourcing ascertain that the vendor’s offerings correlate with their requirements; make decisions around the extent of customization preferred and the choice of multiple against one-system solutions; and, examine the vendor’s footprint of reference clients.
To succeed in this market, the technology research firm advised technology vendors to identify niches or underserved segments that they can tap into.
“They must also understand the state of the insurance industry and its shifting client demographics. Ideally, they should assist insurers in building agility and efficiencies; and, help them manage their ecosystem of relationships by leveraging information with greater granularity and insight in order to make smarter, more profitable business decisions,” it said.