Dublin, Ireland - The U.S. insurance industry has fully emerged from a rough patch at the early part of the decade, according to Research and Markets, a Dublin research firm. Both life and non-life carriers are currently experiencing a period of relative stability, and have reassessed their technology opportunities. In its report, which examines how U.S. insurance technology strategies have evolved over the past 18-24 months, Research and Markets asserts that claims processing will continue to be the focal point of IT spending for non-life insurers through 2008. Overall spending growth will moderate around 2007 as the bulk of costly system rationalization and standardization efforts will be either underway by then, says the firm.
Policy processing will remain the largest spend area for life insurers. Spending on distribution activities, including Internet and intermediary integration will grow faster for life carriers than for non-life as competition and market concentration increase, and as U.S. bancassurance (the combination of banking and insurance) grows.
External spending will grow quickly over the period and outpace total internal spending by 2008. This will be driven by the adoption of Web-based architectures, which are beginning to generate significant interest in the U.S. insurance industry.
The report provides an examination of IT spending in insurance through 2008, segmented by life, non-life and highlighting source, activity, and external market spend. It includes an identification of business drivers and current technology strategies together with identification of current vendor strategies in U.S. Insurance technology.
Source: BUSINESS WIRE
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