Internet of Things
IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.
In the last two years, software-as-a-service (SaaS) technology has established significant inroads into the normally cautious global insurance sector, with at least one-third of all insurers adopting it. SaaS adoption is now poised to move beyond horizontal support functions and become increasingly embedded in core insurance functions. However, concerns around compliance, reliability, and building a robust business case linger, slowing the potential impact of SaaS on the insurance industry.
A recent Ovum study shows that the level of SaaS adoption among insurers is remarkably consistent across both the life and non-life sectors. Larger insurers have slightly higher adoption levels, driven by greater deployment opportunities across their larger application ecosystems.
Unsurprisingly, early SaaS uptake has been for horizontal and collaborative-focused functions, with the majority of insurers’ email, backup/archive, and business continuity systems now being supported by SaaS. More significantly, SaaS is increasingly being adopted to support activities that have traditionally been seen as core and business-critical. The top-three core functions for which insurers are starting to use SaaS are policy administration, regulatory compliance, and customer services. Enthusiasm for SaaS is strongest among carriers in North America and Asia-Pacific, with over one-third expecting to significantly increase spend on SaaS in the next 18 months.
However, the difficulty of developing a business case in support of SaaS is a one of several barriers to wider adoption, and this is an issue in all the regions surveyed. A strong element of any business justification for SaaS to date has been the potential operational cost saving. This has gained strong traction in an environment focused on reducing IT spend.
Less emphasis has been placed on the more intangible but strategically more important benefits, such as improving the ability to launch new products, enter new markets, add new processing capacity, and respond quickly to market opportunities.
Ovum believes that issues with business case development will be overcome in the next two years, particularly as the Ovum survey revealed a positive correlation between insurers that are already significant adopters of SaaS and those that expect to see a significant increase in spend over the next 18 months. This suggests that early adopters in the sector are increasingly confident with the technology and are realizing a broad range of business and cost benefits, which are accelerating adoption within the organization.
The Current and Future Role of SaaS in the Global Insurance Industry, IT0004-000417 (December 2014)
Charles Juniper, Senior Insurance Analyst, Financial Service Technology
Service Provider Markets
ByMike Roberts 01 Oct 2018
Verizon 5G Home is a milestone in the telecoms market because it is the first large-scale commercial launch of broadband services based on 5G technologies, albeit not on a fully standardized version of those technologies.
ByEvan Kirchheimer 26 Apr 2018
Service provider interest in justifying 5G investment through its potential to open new revenue streams from the enterprise segment is growing ever greater.
Europe, Middle East & Africa team - +44 (0) 207 017 7700
Asia-Pacific team - +61 (0)3 960 16700
US team - +1 646 957 8878
Already an Ovum client? Login to the Knowledge Center now