North American Insurance IT Spending In 2008

The insurance industry is contending with a tough market in 2008. Declining premium growth, a bear market, and larger Q1 incurred losses are making insurers more pessimistic this year than last, and that translates into more conservative IT investment plans. Forrester surveyed IT decision-makers at the end of last year and learned that even in this pessimistic time that there are still solid opportunities for technology vendors when it comes to insurance IT. North American insurers are planning to invest in modernizing the software platforms that run their businesses, and the industry is playing catch-up when it comes to its online and eCommerce channels. The most important business initiatives, and where insurers could use help from their technology vendors, are reducing risk, improving customer experience, and exposing better business decision-making information.