December 9, 2010 (New York): Most US insurers will continue to increase their IT budgets for 2011, according to a new report published today by Novarica, a research and advisory firm focused on operations and technology strategy for insurers and financial institutions (www.novarica.com).
The report, based on survey responses from over 120 US insurer CIO members of the Novarica Insurance Technology Research Council (www.novarica.com/council) shows average IT spending as a percentage of premium ranging from 2.2% for large life/annuity/health insurers to 5.1% for small property/casualty insurers.
“Insurers continue to focus their IT spending on delivering badly-needed business capabilities to support growth and reduce overall operating expenses, but the highest priority areas vary widely by size and sector of company, and even within those groups,” said Matthew Josefowicz, Director of Novarica and head of the insurance practice.
Policy administration systems projects continue to be the top priority for a plurality of insurers across all sizes and sectors. The report contains analysis of the top and top three priority projects across 40 different systems categories.
The report is available online at: http://www.novarica.com/it_budgeting_2011.
The results of the report will be discussed on a webinar on Monday, January 10, 2011 at 12pm ET. Interested attendees may register online at: https://www1.gotomeeting.com/register/442374768.
Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives. www.novarica.com