For insurers, 2010 should be a year of "getting back to business." Insurers will be actively preparing for a flurry of investments, with an eye toward meeting future challenges.
In a new report, “Escaping the Annus Horribilis: Insurer Views on IT and Business Strategies Moving Forward,” Boston-based
As the depth of the recession became clearer as the year unfolded, so did the severity of the insurers' responses. "In Q1 2009, most respondents thought changing strategies and large-scale staff reductions were unlikely," says
The report says that insurers were bullish about their own companies' strategies, including competing effectively and job security. Many insurers have implemented strategies to position their companies to ride out the storm. Most have made significant and painful changes to their operations. Staff cuts and salary reductions are largely complete, as are the divestment of assets.
"If there is a single lesson for insurers from 2009, it's the importance of an agile and flexible IT operation that supports rapid response to unpredictable operating conditions," says
In addition to looking at insurer views on the current quarter and a year out along several categories, such as job security, the report looks in some detail at the investment hot spots for 2010 and IT budgets. For example, survey respondents were overwhelmingly more optimistic about the industry at the start of 2010 than they were at the start of 2009. Areas of noticeable improvement in confidence are the company's ability to deliver on the current business strategy (23% change), and to compete effectively for new business. (18% change). Hot areas for IT investment include data mining, claims and infrastructure.