Trends in Asia- Pacific Insurance sector in 2011 is looking positive- Ovum Report

August 19, 2011: Research conducted by Ovum- a well versed research firm in the IT sector in their latest report noted that insurers in Asia-Pacific is planning on an increase in IT budgets for the year 2011-2012. The research conducted by Ovum extended to one month and the report is based on the information gathered from about 50 respondents in the insurance sector all over the region.

Press release by Ovum made it clear that the insurers in Asia – Pacific region is looking forward for a growth in the IT budgets at more than 6 % in the financial year 2011-2012. Insurance companies in the sector have come out from the shadow of economic crisis and are in a growth mode at this point of time according to experts. 

Even though there are insurers still struggling with their operations in the region, the sector as a whole is looking forward for growth in the coming financial year, a top executive of the Ovum research added. 

Other key finding of the survey was that out of the respondents, 51% stated that they are comfortable with business process outsourcing BPO and another 56% are looking ahead in availing the service of IT outsourcing.

Earlier the insurance sector which showed shyness towards outsourcing seems to be showing signs of perspective change. In the present scenario companies are giving more emphasis on outsourcing and it is definite that this will create a positive trend in Asia – Pacific insurance outsourcing sector. It was quite interesting to know that the insurance sector is focusing more on adopting technological advancement and innovations. 43% of insurers in the region are planning to experiment their service with private cloud, which is a very good sign for the insurance service providers.

According to the survey there are many companies in the insurance sector which are still reluctant to outsource their business. But, it is expected that changing trend can influence these companies as well.

The report by Ovum has revealed the upcoming positive trends in the insurance outsourcing sector. More over the rise in IT budget suggests that the sector is about to flourish in the near future. 

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