European insurers tend to use more IT services than North American insurers and contract relationships between IT service providers and insurance companies in Europe tend to be longer.
A recent report by Celent called “What Insurance Customers Really Think: An IT Service Provider Report Card” explores customer feedback about satisfaction and the types of services being outsourced. Overall, insurers seem to be positive about their existing relationships, according to the report.
Custom development and maintenance are the largest areas of spending for insurers, concluded the report. Insurance companies spent 25 percent to 35 percent of their budgets on external IT services, equal to about $37 billion in 2010, Celent said.
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