Improving the customer experience and operational excellence, not growth, is the driving force of a majority of insurance digitalization initiatives in 2023, according to a new Gartner, Inc. survey of insurance CIOs and technology executives.
The 2023 Gartner CIO and Technology Executive Survey gathered data from 2,203 CIO respondents, including 91 from the insurance industry, in 81 countries and all major industries, representing approximately $15 trillion in revenue/public-sector budgets and $322 billion in IT spending.
“Improving the customer experience (CX) ranked higher in the survey this year than more strategic focuses, such as growing revenue or new products/services development to support transformation. The economic stressors of the coming year are making companies refocus and shift directions to fill gaps which have existed for many years,” said Kimberly Harris-Ferrante, Distinguished VP Analyst at Gartner.
“Insurers need more customer data, including more behavioral and preferential data, to effectively execute digital business strategies aimed at cross-sell/upsell, panoptic personalization, dynamic customer engagement and revenue growth through new products/service.”
Tech Investment Priorities Are Shifting
With operational efficiency top of mind, especially as insurers face a possible economic downturn and the need to drive more value to stakeholders, the implementation of process change and technologies is key. The survey found that over half of CIOs are increasing technology investments in 2023, with the most common areas being application modernization, cybersecurity/information security and BI/analytics (see Figure 1).