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Investment in insurance tech could fall ‘in line with the economy’

Rachel Wheeler Archive
The current downturn in the US economy could have large repercussions for IT investment in the insurance industry, it has been argued.

Discussing a recent report from Boston-based analyst firm Celnet on his Insurance Technology blog, Anthony O’Donnell has highlighted the fact that insurers are likely to be more cautious with their spending and investment due to the “current lacklustre performance of the economy”.

However, the expert suggested that investment in IT services can help insurers prepare themselves for uncertainty, both in terms of the economy or otherwise.

“Whatever specific approaches and investments a carrier may make in IT, they can hardly go wrong in moving in the direction of flexibility,” Mr O’Donnell explained.

“In good times and bad, the more agile insurers will minimize waste and maximize opportunity through the responsiveness enabled by technologies such as configurable applications, scalable network and application capabilities such as cloud and SaaS afford, and especially business process management.”

Posted by Paul Newman