Jim Pedersen, senior vice president and chief information and operations officer at Fireman's Fund, added that companies need to embrace industry standards, and he envisioned insurance organizations' IT departments containing a broader set of skills among fewer employees.

Developing business knowledge, Mr. DiBuduo said, is also important for advancement within an insurance company.

Fostering business knowledge within IT is partly the responsibility of the company, he said, noting that companies that hire good tech employees must engage them and empower them to learn the business.

This, he noted, will help companies retain their talent. By empowering IT workers to learn, he explained, the employees develop "emotional capital" in the organization and are less likely to leave.

Mr. DiBuduo said IT at his company is already managing process changes. IT has changed, he said, from a pure technology role to a partnership with the rest of the business that is helping to drive change within the organization.

Mr. DiBuduo said he has seen the interaction between business and IT evolve from a widespread demand wish list issued by the business side to a more focused effort concentrated on where a company can build value.

Mr. Pedersen said the goal for insurers is to not draw lines separating IT and business. They are all one, he explained.