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	May 3, 2007 Industry IT Spending Profile 2007: Insurance by Marc Cecere with Andrew Bartels, Bo Belanger	Average: 8  (1 rating)

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Executive Summary

With the 2007 business environment for North American insurance carriers looking relatively good for the second year in a row, insurance carriers have become slightly more generous in their IT spending. We anticipate that IT spending in 2007 in the insurance industry will increase by 7%, compared with 5% growth in 2006. The highest priority will be efficiency, and the second highest, innovation. The initiatives to support these priorities are utility-oriented projects such as infrastructure consolidation and disaster recovery. However, competitive pressures and technology-enabled opportunities will drive the need for innovation in Internet and mobile applications as well as the replacement of legacy applications. Underpinning these changes will continue to be a drive toward service-oriented architecture (SOA) for internal integration of systems, usage of services firms for transformation, and greater focus on process standardization.

TABLE OF CONTENTS

• 2007 IT Budgets And New Spending Ratios Will Increase
• Business Innovation Gains On Efficiency As A Business Theme
• Innovation Moves Up As An Insurance IT Priority
• Insurers Are Consolidating Oversight Of Services Firms
• SOA Is Strategic For Packages And Reuse

RECOMMENDATIONS

• Insurers Need To Raise Their Games And Exploit Modern Systems

WHAT IT MEANS

• Technology Will Change Insurance Models
• Related Research Documents

This is an excerpt

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