Report Summary:

This report is based on a survey of 35 US P/C insurer CIOs conducted by Novarica in the first half of 2008 in alliance with IASA. Respondents ranged across all lines of business and company sizes.

Among the key findings of the survey:

• Overall IT budgets are holding steady at 3 percent of premium. External spending was a little over half of the average budget.
• Agent e-business was the across-the-board winner for systems delivering the best ROI over the past 18 months.
• 71 percent of respondents shared five top priorities: policy administration system (PAS) replacement, e-business, PAS enhancement, underwriting, or supporting a new line of business (LOB).
• Predictive analytics across multiple areas was the most common area insurers reported as "under evaluation."

The survey results confirm Novarica's observations that the challenge of the past (e-business) has largely been addressed, yielding center stage to that of the present (policy administration systems). The next challenge (predictive analytics) is still hovering in the wings.

CONTENTS

Introduction…2
Key Findings…3
Budgets…4
Staffing…7
User Satisfaction Levels…8
Best ROI in Last 18 Months…9
Highest Priorities…10
Significant Projects Underway…12
Improvements Underway…14
Areas Under Consideration…15
Areas Considered Irrelevant…16
Table: All Areas By Activity Level…17
Conclusions…19
About Novarica…20