Life Insurance Industry Making Strategic Investments in IT, says SMA Survey with LOMA
Feb. 12, 2013 - Life and annuity companies are increasing
IT (Information Technology) investments by an average of two
percent in 2013, according to a recent survey of insurers in North
America conducted by Strategy Meets Action (SMA) in partnership
The top business drivers for IT spending are expense reduction
and growth, a clear indication that insurers are carefully
balancing IT investments. This year's findings signal a change in
priorities from the previous study conducted in 2011, in which
business optimization was the top investment driver.
The research focuses on the technology spending trends among
life and annuity insurers in North America, analyzing how IT
budgets are changing, where the money is being spent, and what
drives technology investment decisions. The study identifies the
specific types of IT projects that are attracting investment in
2013, including both business application projects and emerging
technologies. This is part of a series of studies conducted by SMA
to examine the insurance ecosystem and investigate the alignment of
technology spending and solutions.
Mark Breading, SMA partner, points out "Life and annuity
companies continue to invest in technology to enhance the customer
acquisition process. Distribution is the number one area where
technology budgets are increasing, with marketing and new
business/underwriting not far behind."
"Our members clearly understand the strategic value of IT," said
Jeff Hasty, FLMI, senior vice president of LOMA. "Priorities and
investment directions shift as challenges and opportunities unfold.
The key is to develop the flexibility to stay competitive and meet
today's changing market demands."
The survey results are reported in an article in the February
issue of LOMA's Resource magazine. To read the article, visit: "Tech
Spending Plans of Insurers" on the Resource section of the LOMA
About SMA:Strategy Meets Action (SMA) is a research, advisory,
and consulting firm exclusively serving the insurance industry.
SMA's services are actionable, business-driven, and research-based
- where strategy meets action - enabling companies to achieve
business success. Study author Mark Breading may be reached at
firstname.lastname@example.org. For more information about SMA's
research, visit http://www.strategymeetsaction.com/our-research.
About LOMA: 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.
SMA: Mark Breading, 614-562-8310
LOMA: Ron Clark, 770-984-3718