Life Insurance Industry Plans to Increase IT Budget in 2011, Finds LOMA Resource and SMA Survey
ATLANTA, Nov. 11 , 2010 - Ninety-one percent of
executives for life insurance companies in North America plan to
increase or hold steady their IT budgets in 2011, according to a
survey conducted by LOMA and SMA Strategy Meets Action (SMA).
This report, Riding the Wave: Insurer Technology Spending,
Drivers, and Approaches, focuses on the technology spending
trends among life and annuity insurers in North America. It
analyzes where insures are spending money and what is driving
technology investment decisions. The study examined insurers
by tier, uncovering significant differences in business drivers, IT
spending patterns and development philosophies based on
organizational characteristics. It is part of a series of studies
conducted by SMA to examine the insurance ecosystem and investigate
the alignment of technology spending and solutions.
"The study is consistent with what we are hearing from our
members," said Jeff Hasty, FLMI, ACS, senior vice president of
LOMA. "Information technology will continue to play a key role for
insurers, with more IT spending shifting to the strategic use of
technology to better understand customers and markets, improve
products and increase cross-selling and up-selling
The survey found that the 79 percent of executives say their
companies are growing or are in the process of transforming the
business. SMA analysis points to a slightly increasing rate of
spending, despite the pressure on insurers to control budgets and
significant financial challenges in some areas of the business.
"As the life and annuities industry emerges from this difficult
period, many companies are positioning for the next wave of
growth," notes Mark Breading, SMA Partner. "Over the past two
years, insurers have taken a conservative approach to the business,
working to strengthen their capital position, contain exposure to
certain risks and minimize their expense base. SMA analysis
indicates that while insurers are optimistic about growth
opportunities, most think it prudent to expand IT investments with
a measured pace, at least in the short term."
The full report, part of SMA's Life and Annuities Insurance
Ecosystem Research Series, is available through SMA at www.strategymeetsaction.com.
A summary of the findings is published in the November issue of
LOMA's Resource magazine. The complete article appears in the
Resource section of the LOMA Web site, www.loma.org.
Established in 1924, with 1,200 plus member companies in over 80
countries, LOMA is committed to a business partnership with its
world-wide members in the insurance and financial services industry
to improve their management and operations through quality employee
development, research, information sharing, and related products
and services. To find out more about LOMA and the learning
opportunities it offers, visit LOMA's Web site at www.loma.org.
Exclusively serving the insurance industry, Strategy Meets
Action (SMA) blends unbiased research findings with expertise and
experience to deliver business and technology insights, research,
and advice to insurers and IT solution providers. By leveraging
best practices from both the management consulting and research
advisory disciplines, SMA's services are actionable,
business-driven and research-based - where strategy meets action -
enabling companies to achieve business success. Visit www.strategymeetsaction.com
for more information about SMA, or contact the author, Mark
Breading at email@example.com.
LOMA/LIMRA: Catherine Theroux
(860) 285-7787 (office)
(703) 447-3257 (cell)