If the results of a survey of North American property/casualtyinsurers hold true, 2010 should be a year of growth for theindustry, according to Deb Smallwood, founder of Strategy MeetsAction (SMA).

Results from the survey conducted by SMA show three quarters ofcarriers surveyed believe their enterprise either will grow orsustain their position next year. "Insurers are really looking atgrowth strategies [for 2010]," said Smallwood. "They plan to spendaggressively on technology solutions."

Smallwood and two of her partners at SMA, Karen Furtado and MarkBreading, presented the results of the survey and their analysis ina Web seminar: "Riding the Wave: Insurer Technology Spending,Drivers, and Approaches for 2010 and Beyond." The Webinar wasconducted by Tech Decisions and National UnderwriterP&C.

In looking at the top drivers for technology spending, Furtadoreported business growth was cited as the top driver by 66 percentof respondents. This was followed by both business processoptimization and cost containment/expense reduction, each of whichwas cited by 56 percent of respondents.

"These drivers reflect the need to strengthen processes and staycompetitive," said Furtado.

The survey indicated 37 percent of insurers will increase ITspending in 2010, with 36 percent expecting IT budgets to remainflat. Twenty-one percent reported their IT spending will decrease,with four percent expecting a significant decrease in spending of10 percent or more, and one percent reporting a significantincrease in spending of 10 percent or more.

"This indicates a belief technology investment is essential toremaining competitive in today's marketplace," said Furtado. "Thehealth of the [IT] market shows the industry is very strong."

Furtado indicated the trend revealed in this survey is marketingand product development will be the top priority for 2010 andbeyond. Investments in this area include the purchase of externaldata and the use of predictive analytics and business intelligencetools.

"Competitors are finding ways to attract customers, whetherthrough price or service," said Furtado. "Brand loyalty is not whatit was in the past."

Smallwood's message for insurers is IT spending is aninvestment--not just a cost--but there is no room for missteps. Shealso advised carriers to develop a strategic plan for the business,including a road map.

"[A road map] needs to be for three or five years," she said."It has to go beyond just legacy replacement."

As for IT solution providers, Smallwood believes the industry is"crying for solutions that are easy to implement and easy tointegrate."

To get access to this free Web seminar, go to www.tech-decisions.com/webseminars.