A new report by independent market analyst Datamonitor has found signs that insurance carriers’ use of vendor services is on the rise.
U.S. insurers will turn more and more to professional services providers and consultants to develop, implement and manage complex technology projects, according to the report, “U.S. Insurance Technology Strategies.”
For the first time–as of year-end 2005–spending on external information technology products will outpace internal IT spending, the report reveals.
Through 2009, investment in external products will grow by 6.5% in U.S. life insurance, compared to 1.4% for internal IT, Datamonitor predicts. It expects non-life external spending to grow at an even faster clip, 7.2%, compared to just 2% on internal spending.