Survey Finds Insurance Industry Increasing their IT Budgets in 2012

Swiss Re reported recently that global catastrophic losses for the first half of 2011 will cost the insurance industry around $70 billion. That’s already the second most costly year on record for catastrophic losses, and we still have to add Q3 and Q4 losses for the final total.

While some might think these numbers would leave the insurance industry strapped for cash, a recent survey from Novarica, a research and advisory firm focused on technology strategy in insurance and financial services, found that IT spending is expected to increase in 2012.

The survey, US Insurer IT Budgets and Planning for 2012, which included responses from CIOs and executives from 132 U.S. insurers, uncovered that the majority of respondents plan to increase spending on IT budgets at least slightly in 2012. Considering all the damage done from tornadoes, hurricanes and other disasters this year, this is a smart move for insurers. Investing in technology can end up saving money in the long run.

Contents claims alone cost insurance carriers approximately $15 billion annually. Even slight improvements in contents claims accuracy and efficiency can reward carriers with tremendous savings in bottom line costs and staff resources, with the added benefit of dramatic improvements in customer satisfaction and loyalty. The good news for carriers is that advancements in contents claims technologies and solutions have made this possible with more innovations on the way. As you plan your budgets for 2012 and beyond, investments in contents claims solutions can provide carriers with immediate and measurable ROI.

What technology investments have you seen have the biggest impact on the bottom line?

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