According to an IDC study, in the next 5 years, digital transformation will dictate the dynamics of the IT services market, including the introduction of information systems, predictive analytics and mobile applications in the public sector. Also among the growth factors of the market is the development of “smart” cities and the personalization of services.
Requirements for IT infrastructure will grow, which, together with the desire of the business to reduce capital costs, will support the growth of interest in cloud technologies and virtualization systems. Moving to the clouds allows on average to reduce organization costs by 14–15% or more. Today this is the direction of the IT market, which not only avoided stagnation, but also shows stable growth. Virtualization technologies, such as SDN and NFV, are causing increasing interest among customers.
The cloud services segment should become the “main“ locomotive ”. As the availability and diversity of these services grow, they will capture an ever wider segment of the market.
The rapid spread of the cloud model promises in the coming years to create a stream of stable income for leading providers of IT services. We think that now is the time to monetize the investments made by IT companies in the cloud segment.
Cloud transformation will significantly change the IT services market and the role of players on it.
In general, the market is optimistic in its forecasts. The demand in the IT services segment will definitely grow. The growth in the use of big data technologies and artificial intelligence systems will spur demand not only for infrastructure, but primarily for IT services, from designing algorithms and creating mathematical models, to complex outsourcing and IT support for digital images of companies and manufactures. Accordingly, the business needs of suppliers of IT solutions have changed dramatically – and if the integrator is not ready for new challenges, he will not be able to compete in the market.
Digital and network technologies in insurance are quite obvious areas of technological disruptive innovation, especially in the condition when traditional representatives of the insurance industry are already trying to adapt to the new digital era. A recent study by Morgan Stanley suggests that customer satisfaction in the online customer service segment is significantly below average, yielding only to real estate and telecommunications. Large insurance brands today have a very weak connection with end-users due to a large number of intermediaries, such as a broker, which drastically reduces the possibility of conveying information to customers.
Technologies have the potential to increase the level of efficiency of the insurance industry. We have already seen several success stories in this direction: Market and Check24, which significantly changed the format for searching insurance services for consumers. Young players like InsureTheBox and Marmalade changed the format of insurance industry relations with young drivers by adding many new risk assessment formats, reducing risks for insurers and lowering the cost of services for customers.
So why do not we see a wave of innovation in this segment? One answer is high financial barriers to entry into the industry, which are significantly higher than in other segments. To open an insurance company it takes a huge amount of money to form a reserve insurance fund to cover possible risks. In addition, the regulation in the industry is very tough, which is caused by the high social importance of the industry.
The successes that fintech players demonstrate in all other financial segments should encourage venture investors in this direction. This process, in fact, has already begun and many funds have begun to turn their attention in this direction. Startups such as The Floow, BoughtByMany and QuanTemplate already demonstrate how technology can change the insurance industry.
Fintech innovations have the potential to deliver a wide range of benefits –efficiency improvements, cost reductions, improved risk assessment, superior customer experience and greater financial inclusion. However, some of these innovations could also have negative implications for consumers and the financial stability of insurance markets. There are 3 ways of the further development of situation and impact of these innovations:
In today’s insurance market, information technology is the driving force that allows insurance companies to successfully interact with increasingly demanding and impatient customers. Consumers, well-versed in technological innovations and actively using them in everyday life, expect an appropriate technological level of service from insurers.
Now we can talk about three main trends in the field of digitalization:
There will be a large increase in online sales of insurance products, affiliate programs, work with aggregators, and there will be new types of insurance – for example, owners of drones, insurance of IT assets, said a representative of Ingosstrakh, speaking about the impact of trends directly on the insurance industry.
There are business tasks and there are IT tasks that should support the business. Among the IT priorities for his company, there are three main ones. The first one is to create the fastest, most scalable IT infrastructure. And cloud technologies in this context provide great opportunities, in particular – when deploying test environments.
The second important priority of the company’s development is the full involvement of IT specialists in the business customer’s processes, suggesting proactive proposals from the IT business. And in this context, the third priority is important – the creation of cross-functional teams to implement projects, in order to avoid situations of misunderstanding of business and IT.
This shows crucial importance of implementing IT technologies in the insurance industry, in case your coumpany needs help of software developers with expertise – fell free to contact us!
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