Insurance 2015 CIO Survey Asia Pacific

1. Introduction

Celent is conducting its annual survey of insurance CIOs.

As a participant, you will receive a PDF with consolidated survey results after the report is published. The report's authors, KyongSun Kong and Wenli Yuan will be available to discuss the report's findings with you or your staff.

Please answer all questions in reference to the enterprise or business unit that you and your IT organization support.

All responses will be treated as confidential, and no respondent or company will be cited by name.

If you have any questions, please contact Wenli Yuan at wyuan@celent.com.

Thank you.

Question Title

* 1. What level of influence do the following business goals have on your IT plans for 2015?

	Significant	Moderate	Small	None
Growth and retention	Growth and retention Significant	Growth and retention Moderate	Growth and retention Small	Growth and retention None
Meeting regulatory requirements	Meeting regulatory requirements Significant	Meeting regulatory requirements Moderate	Meeting regulatory requirements Small	Meeting regulatory requirements None
Innovation (disruptive, continuous, technology enabled)	Innovation (disruptive, continuous, technology enabled) Significant	Innovation (disruptive, continuous, technology enabled) Moderate	Innovation (disruptive, continuous, technology enabled) Small	Innovation (disruptive, continuous, technology enabled) None
Cost reduction	Cost reduction Significant	Cost reduction Moderate	Cost reduction Small	Cost reduction None
Process optimization (faster, leaner and smarter business processes)	Process optimization (faster, leaner and smarter business processes) Significant	Process optimization (faster, leaner and smarter business processes) Moderate	Process optimization (faster, leaner and smarter business processes) Small	Process optimization (faster, leaner and smarter business processes) None
Activity, product, and service diversification	Activity, product, and service diversification Significant	Activity, product, and service diversification Moderate	Activity, product, and service diversification Small	Activity, product, and service diversification None
Competitive Parity	Competitive Parity Significant	Competitive Parity Moderate	Competitive Parity Small	Competitive Parity None

Question Title

* 2. Major Initiatives for 2015: What is the status for each of the following

	Completed in past three years	Underway and continuing	Will begin in 2015	In planning process	Not under consideration
Core System Modernization (multiple systems)	Core System Modernization (multiple systems) Completed in past three years	Core System Modernization (multiple systems) Underway and continuing	Core System Modernization (multiple systems) Will begin in 2015	Core System Modernization (multiple systems) In planning process	Core System Modernization (multiple systems) Not under consideration
Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.)	Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.) Completed in past three years	Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.) Underway and continuing	Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.) Will begin in 2015	Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.) In planning process	Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.) Not under consideration
Innovation (substantial change in current business model and/or create new business model)	Innovation (substantial change in current business model and/or create new business model) Completed in past three years	Innovation (substantial change in current business model and/or create new business model) Underway and continuing	Innovation (substantial change in current business model and/or create new business model) Will begin in 2015	Innovation (substantial change in current business model and/or create new business model) In planning process	Innovation (substantial change in current business model and/or create new business model) Not under consideration
Analytics (master data management, analytics, BI)	Analytics (master data management, analytics, BI) Completed in past three years	Analytics (master data management, analytics, BI) Underway and continuing	Analytics (master data management, analytics, BI) Will begin in 2015	Analytics (master data management, analytics, BI) In planning process	Analytics (master data management, analytics, BI) Not under consideration
IT Operational Excellence	IT Operational Excellence Completed in past three years	IT Operational Excellence Underway and continuing	IT Operational Excellence Will begin in 2015	IT Operational Excellence In planning process	IT Operational Excellence Not under consideration

Question Title

* 3. Application Portfolio Plans for 2015: What will you do in 2015 for each of the following?

	Begin replacement	Replacement in progress	Significant Enhancements	Maintain	N.A./No activity
Portals	Portals Begin replacement	Portals Replacement in progress	Portals Significant Enhancements	Portals Maintain	Portals N.A./No activity
Mobile for agents/customers	Mobile for agents/customers Begin replacement	Mobile for agents/customers Replacement in progress	Mobile for agents/customers Significant Enhancements	Mobile for agents/customers Maintain	Mobile for agents/customers N.A./No activity
Call Center/Telephony	Call Center/Telephony Begin replacement	Call Center/Telephony Replacement in progress	Call Center/Telephony Significant Enhancements	Call Center/Telephony Maintain	Call Center/Telephony N.A./No activity
CRM	CRM Begin replacement	CRM Replacement in progress	CRM Significant Enhancements	CRM Maintain	CRM N.A./No activity
Distribution Mgmt (Comm. Licensing)	Distribution Mgmt (Comm. Licensing) Begin replacement	Distribution Mgmt (Comm. Licensing) Replacement in progress	Distribution Mgmt (Comm. Licensing) Significant Enhancements	Distribution Mgmt (Comm. Licensing) Maintain	Distribution Mgmt (Comm. Licensing) N.A./No activity
Standalone Underwriting Workbench	Standalone Underwriting Workbench Begin replacement	Standalone Underwriting Workbench Replacement in progress	Standalone Underwriting Workbench Significant Enhancements	Standalone Underwriting Workbench Maintain	Standalone Underwriting Workbench N.A./No activity
Policy Administration System	Policy Administration System Begin replacement	Policy Administration System Replacement in progress	Policy Administration System Significant Enhancements	Policy Administration System Maintain	Policy Administration System N.A./No activity
Standalone Rating Engine	Standalone Rating Engine Begin replacement	Standalone Rating Engine Replacement in progress	Standalone Rating Engine Significant Enhancements	Standalone Rating Engine Maintain	Standalone Rating Engine N.A./No activity
Billing System	Billing System Begin replacement	Billing System Replacement in progress	Billing System Significant Enhancements	Billing System Maintain	Billing System N.A./No activity
Claims Admin System	Claims Admin System Begin replacement	Claims Admin System Replacement in progress	Claims Admin System Significant Enhancements	Claims Admin System Maintain	Claims Admin System N.A./No activity
Reinsurance system	Reinsurance system Begin replacement	Reinsurance system Replacement in progress	Reinsurance system Significant Enhancements	Reinsurance system Maintain	Reinsurance system N.A./No activity
Illustrations (Life)	Illustrations (Life) Begin replacement	Illustrations (Life) Replacement in progress	Illustrations (Life) Significant Enhancements	Illustrations (Life) Maintain	Illustrations (Life) N.A./No activity
Bus Rules Mgmt System	Bus Rules Mgmt System Begin replacement	Bus Rules Mgmt System Replacement in progress	Bus Rules Mgmt System Significant Enhancements	Bus Rules Mgmt System Maintain	Bus Rules Mgmt System N.A./No activity
Bus Process Mgmt	Bus Process Mgmt Begin replacement	Bus Process Mgmt Replacement in progress	Bus Process Mgmt Significant Enhancements	Bus Process Mgmt Maintain	Bus Process Mgmt N.A./No activity
Document Creation	Document Creation Begin replacement	Document Creation Replacement in progress	Document Creation Significant Enhancements	Document Creation Maintain	Document Creation N.A./No activity
Document Repository	Document Repository Begin replacement	Document Repository Replacement in progress	Document Repository Significant Enhancements	Document Repository Maintain	Document Repository N.A./No activity
Business Intelligence	Business Intelligence Begin replacement	Business Intelligence Replacement in progress	Business Intelligence Significant Enhancements	Business Intelligence Maintain	Business Intelligence N.A./No activity
Master Data Management	Master Data Management Begin replacement	Master Data Management Replacement in progress	Master Data Management Significant Enhancements	Master Data Management Maintain	Master Data Management N.A./No activity
Predictive Analytics/Modeling	Predictive Analytics/Modeling Begin replacement	Predictive Analytics/Modeling Replacement in progress	Predictive Analytics/Modeling Significant Enhancements	Predictive Analytics/Modeling Maintain	Predictive Analytics/Modeling N.A./No activity
Investment Management System	Investment Management System Begin replacement	Investment Management System Replacement in progress	Investment Management System Significant Enhancements	Investment Management System Maintain	Investment Management System N.A./No activity
Financial and Administration Systems	Financial and Administration Systems Begin replacement	Financial and Administration Systems Replacement in progress	Financial and Administration Systems Significant Enhancements	Financial and Administration Systems Maintain	Financial and Administration Systems N.A./No activity
Enterprise Risk Management System	Enterprise Risk Management System Begin replacement	Enterprise Risk Management System Replacement in progress	Enterprise Risk Management System Significant Enhancements	Enterprise Risk Management System Maintain	Enterprise Risk Management System N.A./No activity

Question Title

* 4. What % of your total 2015 IT budget will be for R&D and pilot projects?

Question Title

* 5. How much did your firm spend on IT in 2014, expressed as a percentage of direct written premium?

Question Title

* 6. For the total IT budget, what is the projected percentage change from 2014 to 2015?
(For example, a 2014 IT budget of $10 mil and a 2015 budget of $11 mil; is a 10% increase)

Question Title

* 7. Digital Strategy
Below are several kinds of digital initiatives. Please indicate the your planned level of
activity for each in 2015.

	Very high	High	Moderate	Low	None
Making the new business process all or mostly digital	Making the new business process all or mostly digital Very high	Making the new business process all or mostly digital High	Making the new business process all or mostly digital Moderate	Making the new business process all or mostly digital Low	Making the new business process all or mostly digital None
Making policyholder service process all or mostly digital	Making policyholder service process all or mostly digital Very high	Making policyholder service process all or mostly digital High	Making policyholder service process all or mostly digital Moderate	Making policyholder service process all or mostly digital Low	Making policyholder service process all or mostly digital None
Integrating processes with business partners (repair shops, medical providers, etc.)	Integrating processes with business partners (repair shops, medical providers, etc.) Very high	Integrating processes with business partners (repair shops, medical providers, etc.) High	Integrating processes with business partners (repair shops, medical providers, etc.) Moderate	Integrating processes with business partners (repair shops, medical providers, etc.) Low	Integrating processes with business partners (repair shops, medical providers, etc.) None
Business process automation (STP)	Business process automation (STP) Very high	Business process automation (STP) High	Business process automation (STP) Moderate	Business process automation (STP) Low	Business process automation (STP) None
Using analytics and rules to automate decisions	Using analytics and rules to automate decisions Very high	Using analytics and rules to automate decisions High	Using analytics and rules to automate decisions Moderate	Using analytics and rules to automate decisions Low	Using analytics and rules to automate decisions None
Mobility for internal staff	Mobility for internal staff Very high	Mobility for internal staff High	Mobility for internal staff Moderate	Mobility for internal staff Low	Mobility for internal staff None
Mobility for agents/brokers	Mobility for agents/brokers Very high	Mobility for agents/brokers High	Mobility for agents/brokers Moderate	Mobility for agents/brokers Low	Mobility for agents/brokers None
Mobility for policyholders/claimants	Mobility for policyholders/claimants Very high	Mobility for policyholders/claimants High	Mobility for policyholders/claimants Moderate	Mobility for policyholders/claimants Low	Mobility for policyholders/claimants None
Using social media for marketing, sales	Using social media for marketing, sales Very high	Using social media for marketing, sales High	Using social media for marketing, sales Moderate	Using social media for marketing, sales Low	Using social media for marketing, sales None
Using social media for underwriting or claims	Using social media for underwriting or claims Very high	Using social media for underwriting or claims High	Using social media for underwriting or claims Moderate	Using social media for underwriting or claims Low	Using social media for underwriting or claims None

Question Title

* 8. Innovation can fall into two general types: Incremental, which is focused on the existing business model, and Disruptive which deals with new business models and/or building new markets. How would you characterize the allocation of effort within your organization between these two approaches?

Spend 100% of our time on incremental innovation

90% incremental / 10% disruptive

80% incremental / 20% disruptive

60% incremental / 40% disruptive

Spend more than 50% of our time on disruptive innovation

Not sure

For question 9:
The new investments category consists of outlays related to the development of application software and the cost of developing and implementing significant functional enhancements for existing software applications. New development expenditures include fully loaded relevant personnel expenses for internal development staff, as well as contractor fees, consulting fees, license fees, and any other costs associated with the development or purchase of new applications and the addition of significant new functionality. Relevant hardware expenses are also included in this category.

Maintenance is concerned with IT spending to maintain the current production technical environment. It includes outlays on minor system enhancements, routine software and hardware upgrades, and general problem fixes (system debugging, etc.). Relevant hardware expenses are also included in this category.

Question Title

* 9. In 2015 about what percentage of technology spending will fall in the following categories? Please enter numbers only (33), not (33%). Total should = 100.

New Investments

Maintenance

For question 10:
Internal IT spending denotes expenses associated with the internal management, analysis, development, maintenance, support, and operation of information technology. It includes all internal spending on data center operations and management of technology personnel.

External IT spending consists of three categories: externally provided hardware, software, and services. It includes expenses associated with the purchase or lease of hardware, software, and services for the analysis, development, maintenance, support, and operation of information technology. It also includes all information technology expenditures that are in addition to fully loaded internal technology staffing costs.

Hardware. Hardware IT spending consists of all expenses associated with the purchase or lease of computer hardware, including servers and networking equipment and associated peripherals. This category also includes costs associated with operating systems and networking middleware.

Software. External spending on software includes purchasing costs or licensing fees associated with third party packaged solutions, but not installation fees and costs of customization upon installation.

Services. The services category includes all expenses associated with IT services purchased from external sources, including professional contractors, application service providers, service bureaus/outsourcers, systems facilities management, disaster recovery, and technology training. Also included in this category are fees charged by third party software application providers for installation and consulting.

Question Title

* 10. In 2015 about what percentage of technology spending will fall in the following categories? Please enter numbers only (33), not (33%). Total should = 100.

Internal

Hardware

External Software

External Services

Question Title

* 11. Any other comments or observations?

Question Title

* 12. Please enter your contact information (this will be used for verification purposes only)

Name

Job Title

Company (and Business Unit if applicable)

Email address

Phone

Question Title

* 13. What is the direct written premium of the organization your IT group supports?

$5 billion or more

$1 billion to $4.9 billion

$500 million to $999 million

$100 million to $499 million

Under $100 million

Question Title

* 14. Approximately how is annual premium distributed among various lines of business?
Please enter numbers only, e.g. "25" not "25%" Total should equal 100.

Personal Lines

Standard Commercial Lines

Specialty Commercial Lines

Workers Comp

Individual Life

Group Benefits (life, health, other)

Annuities

Question Title

* 15. If you are not already a member of Celent's Research Panel, would you be interested in joining? Every few months you'll receive a link to a short survey. If you choose to respond, you'll get a PDF with consolidated survey results – and if it’s not an interesting topic, you can just ignore it.

Yes

Maybe. Tell me more.

I'm already part of your panel

Thank you for completing this survey. Please click the "Next" link below to transmit your responses.

Question Title

* 1. What level of influence do the following business goals have on your IT plans for 2015?

Question Title

* 2. Major Initiatives for 2015: What is the status for each of the following

Question Title

* 3. Application Portfolio Plans for 2015: What will you do in 2015 for each of the following?

Question Title

* 4. What % of your total 2015 IT budget will be for R&D and pilot projects?

Question Title

* 5. How much did your firm spend on IT in 2014, expressed as a percentage of direct written premium?

Question Title

* 6. For the total IT budget, what is the projected percentage change from 2014 to 2015?(For example, a 2014 IT budget of $10 mil and a 2015 budget of $11 mil; is a 10% increase)

Question Title

* 7. Digital StrategyBelow are several kinds of digital initiatives. Please indicate the your planned level ofactivity for each in 2015.

Question Title

* 8. Innovation can fall into two general types: Incremental, which is focused on the existing business model, and Disruptive which deals with new business models and/or building new markets. How would you characterize the allocation of effort within your organization between these two approaches?

Question Title

* 9. In 2015 about what percentage of technology spending will fall in the following categories? Please enter numbers only (33), not (33%). Total should = 100.

Question Title

* 10. In 2015 about what percentage of technology spending will fall in the following categories? Please enter numbers only (33), not (33%). Total should = 100.

Question Title

* 11. Any other comments or observations?

Question Title

* 12. Please enter your contact information (this will be used for verification purposes only)

Question Title

* 13. What is the direct written premium of the organization your IT group supports?

Question Title

* 14. Approximately how is annual premium distributed among various lines of business?Please enter numbers only, e.g. "25" not "25%" Total should equal 100.

Question Title

* 6. For the total IT budget, what is the projected percentage change from 2014 to 2015?
(For example, a 2014 IT budget of $10 mil and a 2015 budget of $11 mil; is a 10% increase)

* 7. Digital Strategy
Below are several kinds of digital initiatives. Please indicate the your planned level of
activity for each in 2015.

* 14. Approximately how is annual premium distributed among various lines of business?
Please enter numbers only, e.g. "25" not "25%" Total should equal 100.