Luxembourg: IT In The Insurance World: Walkin' On Clouds

Last Updated: 8 November 2016
Article by Dieter Putzeys

Most Read Contributor in Luxembourg, October 2017

The first-ever Benelux version of the Insurance Systems Survey is out, looking at insurance technology trends throughout the Benelux region. We found that cloud computing is already in orbit, green IT has yet to lift off, big insurers are not looking to hire, and a healthy minority of insurance companies can't stand their IT outsourcing service. (We even found out why). Our survey sample covers a diversity of market sizes, company types, and countries, and we feel that this sampling, and the insights we garnered from it, are a success. Check out the full text here or read on for a few key highlights.

Trends: the best and the rest

In the realm of IT trends, cloud computing is the runaway favourite, with two-thirds of our respondents reporting that it's on their agendas. Indeed, cloud computing in general is currently enjoying quite an uptick, with Statista recently estimating that the market will reach $160 billion by 2020 (compared to $97 billion in 2015). The confidence in this area might suggest that the long-term bugbear of cloud computing critics—the security issue—is being improved.

Unsurprisingly, there are professional secrecy rules in Luxembourg governing how sensitive data is stored. For a start, it must be within the country, which poses a problem to companies wishing to outsource, since with many cloud storage offerings you don't even know where the data is kept. This could also be an opportunity for data centres in Luxembourg to offer cloud services on a European level.

Another major trend is mobile/apps, as insurers continue to adapt to changing consumer habits. Indeed, the new generation of insurance clients are being raised in a world where smartphones and wifi are omnipresent, and for whom the concept of "office hours" is a relic of the past. Data analytics was also mentioned by many of the survey respondents, suggesting that opportunities within big data are perhaps not yet being taken full advantage of.

In contrast, the Internet of Things (IoT) did not rank high on the list of IT priorities, and green IT, last in line, hardly qualifies as a trend at all.

The geeks downstairs

Unlike what previous surveys told us, we have found that a company's size does not appear to influence the relative size of its IT department, which on average makes up about 11% of the total number of employees. Previous data had shown that small- and mid-sized insurers tended to have relatively smaller IT departments compared to large companies.

Our results furthermore indicate that the size of a company influences how it is preparing to face upcoming IT challenges. Small- and mid-size companies, on one hand, plan on maintaining a stable IT workforce or even hiring additional staff. The majority of large insurers, on the other hand, told us that they plan to hire fewer people over the next two years. This might be an indication that the IT departments of large insurers are already big enough, they feel, to carry out the tasks and responsibilities needed.

Partially or completely outsourcing the IT function is something only of interest to some smaller insurers.

But at what cost?!

Cost containment and cost reduction are among insurers' concerns. Especially with the transparency of cost levels garnering so much media attention recently, the companies we surveyed talked about the extra internal scrutiny they are putting on their cost models. With regulatory changes and operational excellence projects, however, cutting IT costs remains a difficult task. Seventy-five percent of the IT managers we spoke to said that they feel they contribute an equal amount of effort to cost-cutting compared to other departments in their organisations.

Under someone else's roof

IT outsourcing seems to hold somewhat of a less important place on insurers' agendas today. Within our sample, various IT domains have already been outsourced to a large degree, mainly infrastructures, helpdesks, networks and file servers. Fewer companies tend to consider outsourcing IT functions like business process outsourcing, application maintenance, and application development, since they are more closely related to core business activities. However, this does not mean that outsourcing is no longer considered: more than 15% of our Benelux sample will outsource IT functions in the coming years.

Forty percent of insurers are generally satisfied with their IT outsourcing, while another 40% have mixed feelings. Most of the remainder are decidedly unsatisfied, especially with application maintenance and application development. These latter areas would be the next key places for IT providers to develop better offerings.

Where IT fits into the strategy

By definition, IT departments must support the company's business strategy, realise key business priorities, and enable innovative service propositions. According to our survey, IT departments have the greatest impact on operational excellence and scalability, which suggests that Benelux insurers have prioritised improvements and growth in their offerings. Another heavy-impact area is compliance, which, given the age of regulations we're currently in, comes as no surprise—at the moment, this area shows no sign of slowing down.

Interestingly, low on the priority list for IT management were innovation and technology. Perhaps this could be explained by the suggestion by some that customer expectations are what drive innovation within the insurance industry, rather than IT systems, or the commentary by others that innovation is being spurred largely by disruptive competitors.

In all, interesting times are ahead for IT executives in the insurance sector. Rapidly changing market conditions and shifting customer expectations bring new needs, ideas, and issues every day. Anticipating and reacting to every trend is hard enough, but the real juggling comes when you open the budget book—it will be interesting to see how different insurers prioritise their IT spending in the never-ending search for a step up over the competition.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
23 Nov 2017, Seminar, Luxembourg, Luxembourg

The ACA Insurance Day brings hundreds of insurance, finance and public sector professionals together.

30 Nov 2017, Other, Luxembourg, Luxembourg

We are proud to sponsor this conference on Luxembourg’s global TA & Distribution operations operating model

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.