Executive Summary

Global insurers have been rocked by large, unexpected payouts and falling revenues amid the coronavirus pandemic. Yet, P&C and life insurers in leading markets will still increase their tech spend and accelerate their digital transformations in the next several years to enhance the online user experience.

Three Key Questions This Report Will Answer

• What’s driving the growth of US, UK, and Canadian P&C and life insurers’ IT/tech spend, and what can we expect to see through 2024?
• What impact will the pandemic have on spending in the short and longer term? 
• Where will insurers focus their tech expenditures?

WHAT’S IN THIS REPORT? Insider Intelligence forecasts the trajectory of US, UK, and Canadian P&C and life insurers’ IT/technology investment between 2020 and 2024 amid the competing pressures of incumbents’ digitization drives and the economic downturn caused by the pandemic. The report identifies the key factors that will influence tech spend at a global level, inhibiting growth in the shorter term (such as a decline in premium growth) and driving it in the longer term (like closing growing coverage gaps). The report also takes a closer look at the growth factors unique to each of the three key insurance markets for both P&C and life insurers.

KEY STAT: P&C insurers’ IT/Tech expected spend growth rates plummeted in the short term (Q1 2019–Q4 2020) amid pandemic-induced disruption to their revenues—but they will grow tech spend volume through 2024, as they strive to digitize their businesses and leverage emerging technologies to enhance their customer experience.