Nearly two-thirds of insurers plan to boost their information technology budgets in 2014, according to new research.
Ovum discloses this finding in “2013 ICT Enterprise Insights in the Insurance Industry.” Based on interviews with 6,500 senior IT executives, the report examines information technology (IT) spending among insurers by region, insurance line and size of insurer.
The report reveals that 65 percent of insurers intend to increase their IT budgets next year. Significantly, 24 percent of insurers are increasing their IT budgets by more than 6 percent in 2014, up from 14 percent of insurers in 2013, an indicator of “cautious optimism” about continuing market improvements.
“However, this picture varies by region and line of business,” the report states. “The Asia-Pacific area continues to show the highest regional growth. IT spending by the global life insurance industry grew at a faster rate than the P&C sector in 2013 and is set to increase further in 2014.