While insurers in Asia typically still have the tendency to look inwards rather than outsource, the marketplace is becoming increasingly aware of the benefits of outsourcing technology in order to compete in today's marketplace, finds the IDC Financial Insights' latest report.
According to the report, insurers in the region have been laggards in IT spending, but the economic malaise has driven home the need to create a more dynamic business framework through the assistance of technology.
In the "Insurance Vendors: Spotlighting the Major Players in Asia-Pacific" report, IDC recommends that insurers exploring IT outsourcing ascertain that the vendor's offerings correlate with their requirements, make decisions around the extent of customisation preferred and the choice of multiple versus one-system solutions, and examine the vendor's footprint of reference clients.
To succeed in this market, the company advises technology vendors to identify niches or underserved segments that they can tap into. They must also understand the state of the insurance industry and its shifting client demographics. Ideally, they should assist insurers in building agility and efficiencies, and help them manage their ecosystem of relationships by leveraging information with greater granularity and insight in order to make smarter, more profitable business decisions.