US L/H Insurance IT Spending, 2005 - 2010
| New York, NY, USA February 14, 2005|
US Insurance IT Spending 2005-2010 Reports Published by Celent
Celent projects that US insurers will spend US$28.8 billion on IT in 2005a figure that will grow to US$42 billion in 2010.
Celents newest insurance reports, US L/H Insurer IT Spending 20052010 and US P/C Insurer IT Spending 20052010, project modest proportional growth over the next five years. The reports break projected spending down among maintenance and new projects, hardware/software/staff/services/telecom/ other, and 11 different functional areas.
"US insurers spend between 2.5 percent and 3 percent of premium on IT," said Matthew Josefowicz, manager of Celents insurance group and author of the report. "Celent believes that over the next five years, this will increase to between 3 percent and 3.5 percent as IT becomes even more essential to insurance company operations and consumes a larger portion of operating ratios. As overall premium grows modestly over the next five years, IT spending will essentially keep pace."
P/C insurance IT spending is expected to grow from US$13.2 billion in 2005 to US$20.8 billion in 2010. Over that time, new project spending will shift slightly away from policy administration and claims and toward product design and distribution.
L/H insurance IT spending is expected to grow from US$15.6 billion in 2005 to US$21.2 billion in 2010. Over that time, new project spending will shift slightly away from policy administration, underwriting, and IT infrastructure and toward product design, distribution, claims, and billing.
A table of contents for both reports is available online. Click here for the life/health edition, here for the property/casualty edition.
A list of figures is also available online for each report. Click here for the life/health edition, here for the property/casualty edition.
of Celent Communications' Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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|New York, NY, USA February 14, 2005|
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