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.

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

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

* 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)
Digital Transformation (digitization, mobile, automation, telematics/Internet of Things, etc.)
Innovation (substantial change in current business model and/or create new business model)
Analytics (master data management, analytics, BI)
IT Operational Excellence

* 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
Mobile for agents/customers
Call Center/Telephony
CRM
Distribution Mgmt (Comm. Licensing)
Standalone Underwriting Workbench
Policy Administration System
Standalone Rating Engine
Billing System
Claims Admin System
Reinsurance system
Illustrations (Life)
Bus Rules Mgmt System
Bus Process Mgmt
Document Creation
Document Repository
Business Intelligence
Master Data Management
Predictive Analytics/Modeling
Investment Management System
Financial and Administration Systems
Enterprise Risk Management System

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

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

* 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.

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

* 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?

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.

* 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.

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.

* 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.

* 11. Any other comments or observations?

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

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

* 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.

* 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.

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

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