Its been a tough few years for the insurance industry in general and IT departments specifically. But as 2003 fades into 2004, the promise of a somewhat brighter future lies ahead. IT leaders have been swallowing budget cuts in recent years and have been forced to find better ways of doing the work while reducing costs. Examples of these skills have come from Web services projects, where insurers found ways to get some new-age value out of old-school legacy systems, and the management of the insurers software portfolio, where new uses of older assets have extended the life and the investment carriers have made in technology.

As we close out another year, Tech Decisions asked three insurance IT leaders to assess the tools, tactics, and cost management that will be needed to make IT departments more productive and the enterprise more cost efficient. Responding to our queries were Srinivas Koushik, enterprise chief technology officer for Nationwide; Michael Connly, chief information officer of The St. Paul Companies; and Jane Koppenheffer, chief information officer for Penn National Insurance. Their views on what lies ahead for their companies and their industry offer insight into where insurance technology is now, where it is heading, and how it will get there.

ToolsTech Decisions: Which areas do you see taking prominence in insurance IT shops in the coming year: infrastructure, integration, front-end systems, claims, underwriting, other areas? Why?