Claims technology will be in focus for property/casualtyinsurers in 2006, and policy administration systems will continueto be the centerpiece for life insurers, analysts from Gartnerpredict.

Writing for the P&C market, research vice president KimberlyHarris-Ferrante predicts investment in claims technology andprocess improvement projects will increase by more than 20 percentthis year among property/casualty insurers. In her research report,Harris-Ferrante notes: "Although claims are the most criticalservice events in the P&C insurance sector, insurers haveoverlooked it for substantial IT investment during the past fewyears. This will change in 2006 as leading insurers aggressivelyinvest in reducing losses, improving service quality, andstreamlining claims processes."

Among the recommendations Harris-Ferrante makes for insurers isstreamlining the end-to-end claims process to automate and reducethe administrative tasks performed by adjusters and claimsprofessionals.

Writing for the life insurance market, research vice presidentTodd Eyler predicts one-quarter of the world's largest lifeinsurance companies will begin projects in 2006 that will makeavailable up to 30 percent of their IT costs. Eyler indicates:"After a decade of inaction, five of the world's top-20 lifeinsurers will begin policy administration system consolidationprojects for systems that support individual life and annuityproducts. These high-risk, high-reward projects will help determinewhich life insurers continue to grow."

He suggests insurers go beyond cost metrics and justificationswithin the business case and include projected improvements inturnaround times in areas such as new-product development,underwriting decisions, and paying producers.