For Financial Services Professionals

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	June 1, 2005 Drivers And Trends For IT In Insurance by Marc Cecere with Bruce D. Temkin, Adele Sage

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Executive Summary

A soft insurance market combined with regulatory requirements and more sophisticated IT leadership is driving IT to make significant changes. During the next two years, we will see increased consolidation of systems and processes, as well as the application of point solutions for high-return/high-risk areas. Furthermore, in midtier carriers, we will see increasing deployment of packages to replace the core systems of policy administration and claims processing. Finally, both IT and business process outsourcing will increase slowly as the industry knowledge of vendors and the sophistication of IT leaders increases.

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