Life Insurance Industry Making Strategic Investments in IT, says SMA Survey with LOMA
ATLANTA, Feb. 12, 2013 /PRNewswire/ -- 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 with LOMA.
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 website.
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.
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.