Contrary to the current mantra of budget cuts and lowered spending, a new study shows that if the return on investment is there, P&C insurers will be, too.
Dont be too quick to assume that the economy has pulverized IT spending. It may be to blame for many of todays woes, but if an IT department can project a decent ROI, the implementation still might stand a good chance of getting the money. My overall take is its not as bad [for P&C insurers] as the rest of the financial services industry, says Jamie Bisker, director of research for insurance practices at TowerGroup and author of the research note, U.S. Property & Casualty Insurance IT Spending: 2002 and Beyond.
He adds that a significant portion of insurers are saying theyre spending just as they planned to do, unless they had significant losses to recover from after 9/11. The message is: They see the value of technology, they are concerned about the ROI, but I havent heard of any drastic pullbacks, like you hear from securities, for example.
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