Over 90 percent of executives for life insurance companies inNorth America plan to increase or hold steady their IT budgets in2011, according to a survey conducted by LOMA and SMA StrategyMeets Action.

This report, Riding the Wave: Insurer Technology Spending,Drivers, and Approaches, focuses on the technology spendingtrends among life and annuity insurers in North America. Itanalyzes where insures are spending money and what is drivingtechnology investment decisions.

The study examined insurers by tier, uncovering significantdifferences in business drivers, IT spending patterns anddevelopment philosophies based on organizational characteristics.It is part of a series of studies conducted by SMA to examine the insuranceecosystem and investigate the alignment of technology spending andsolutions.

"The study is consistent with what we are hearing from ourmembers," says Jeff Hasty, FLMI, ACS, senior vice president ofLOMA. "Information technology will continue to play a key role forinsurers, with more IT spending shifting to the strategic use oftechnology to better understand customers and markets, improveproducts and increase cross-selling and up-sellingopportunities."

The survey found that the 79 percent of executives say theircompanies are growing or are in the process of transforming thebusiness. SMA analysis points to a slightly increasing rate ofspending, despite the pressure on insurers to control budgets andsignificant financial challenges in some areas of the business.

"As the life and annuities industry emerges from this difficultperiod, many companies are positioning for the next wave ofgrowth," says Mark Breading, SMA partner. "Over the past two years, insurershave taken a conservative approach to the business, working tostrengthen their capital position, contain exposure to certainrisks and minimize their expense base. SMA analysis indicates thatwhile insurers are optimistic about growth opportunities, mostthink it prudent to expand IT investments with a measured pace, atleast in the short term.""

The full report, part of SMA's Life and Annuities InsuranceEcosystem Research Series, is available through SMA. Asummary of the findings is published in the November issue ofLOMA's Resource magazine. The complete article appears in the Resource section of theLOMA Web site.