Global insurance IT budgets are projected to increase at a 6.5 percent compound annual-growth rate, reaching $109 billion by 2017, according to “Insurance Sector IT Priorities and Spending Forecast to 2017,” a report from Ovum. This follows five years of IT budget cuts prompted by the global economic slowdown, Ovum said.

"The sharp decline in new business growth across all life insurance markets following the global slowdown led most insurers to rapidly and significantly cut their IT budgets," says Charles Juniper, Ovum’s senior insurance analyst, financial services technology. "However, accelerating year-on-year growth in 2013 following some cautious expansion from 2011 confirms that life insurers are now moving from a cost-cutting mindset toward reinvestment in strategic IT projects."

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