The economy has tempered IT spending within the insurance industry in recent years, as many carriers reigned in their project development to concentrate on essential projects. This year, spending appears to be bouncing back somewhat, according to the findings of Insurance Networking News' recent survey of 95 carriers, agents, brokers and services firms.For starters, insurers' spending on packaged applications and software development appears to be on the upswing for the remainder of 2003. Carriers have budgeted an average of $1.4 million for packaged software for 2003, up by more than 14% from what they spent in 2002, the survey reveals (See chart, page 19).
However, carriers' planned spending on internal software development is declining this year. Last year, carriers, on average, planned to spend almost $4 million on internal development; instead, they indicated that they spent on average about $2.8 million. This year, however, plans are to spend an average of $3.2 million-a 15% increase over 2002 numbers, but less than previous budgets.
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