The insurance industry is faced with the struggles of market pressures and rising costs as part of today’s global economy. And it’s no secret that information technology is a major expenditure. Across North America, Europe, Latin America and Asia Pacific, IT spending is expected to reach to $162.1 billion this year, according to Celent’s report “IT Spending in Insurance: A Global Perspective.”
While it’s a given IT spending will continue to be a substantial investment for insurance organizations, there are cost-effective ways to leverage and maximize existing technology and systems.
Gary Bourland, vice president and general manager of the Insurance vertical at Lexmark employs a discovery-based approach to help insurance companies make the most of their IT investment.
InContext Magazine sat down with Bourland to discuss the challenges facing the insurance marketplace as it evolves to achieve complete process optimization.
Here’s a piece of that conversation.
InContext: With the challenges insurers are facing in the marketplace, what are insurers doing to improve their processes?
Gary Bourland: On one end of the spectrum, they are trying to modernize what they have, meaning adapting to changes in the market and customer requirements. On the other end, there are insurers who are trying to replace elements of their core.
On this spectrum, we see the vast majority of insurance companies more focused on the modernization side. They’re not looking to “rip and replace” what they’ve got. They’re simply trying to address the deficiencies in their current application suite.
That is typically done by focusing on the question: “What is the issue I’m trying to address?”
Click here to read the entire article on Perceptive Software’s InContext Magazine.