Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Celent Sees Modest Growth In Life IT Spending

Your article was successfully shared with the contacts you provided.

U.S. life and health insurers could increase spending on computers, networks and related systems 36% by 2010.[@@]

An analyst at Celent Communications, Boston, has published that estimate in a forecast focusing on the U.S. insurance IT market.

U.S. insurers have been spending 2.5% to 3% of premiums on technology, according to Matthew Josefowicz, the analyst who wrote the report.

“Celent believes that, over the next 5 years, this will increase to between 3% and 3.5% as IT becomes even more essential to insurance company operations,” Josefowicz says.

In the short run, that means IT spending growth will keep pace with premium growth, Josefowicz predicts.

The modest increases could build up over time, with life and health IT spending rising to $21.2 billion in 2010, from $15.6 billion this year, and property-casualty IT spending rising to $20.8 billion, from $13.2 billion, over that same period.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.