US P/C Insurance IT Spending, 2005 - 2010

February 14, 2005

Abstract

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 2005—a figure that will grow to US$42 billion in 2010.

Celent’s newest insurance reports, US L/H Insurer IT Spending 2005–2010 and US P/C Insurer IT Spending 2005–2010, 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 Celent’s 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 info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

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].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA February 14,  2005

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
THE US INSURER MARKETPLACE 5
INSURANCE IT: FUNCTIONAL AREAS 10
TOTAL US INSURER IT SPENDING 12
FIVE-YEAR PROJECTIONS FOR TOTAL MARKET 17
TOTAL P/C INSURER IT SPENDING 19
EXAMPLES BY TIER 23
FIVE-YEAR GROWTH IN P/C INSURANCE IT SPENDING 33
CONCLUSION 37
OBJECTIVITY AND METHODOLOGY 38

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