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A growing number of insurers harness the cloud for a strategic advantage. CIOs across the board reap cost savings, scale-on-demand, business continuity and other payoffs using cloud for non-core it services.

Its only as strong as your weakest link

Many companies aren't willing to give up on their legacy systems just yet. The risk lies in trading the known for the unknown. Systems contain business rules that reflect decades of company history, records of products and customers, data that can be mined and other valuable assets.

By 2016 cloud deployments will represent the bulk of IT spending, one study says, but insurers are a naturally risk-averse bunch and remain wary about cloud security.

By 2016 cloud deployments will represent the bulk of IT spending, one study says, but insurers are a naturally risk-averse bunch and remain wary about cloud security.

As premiums have grown, so have insurers IT budgets. But despite all the buzz around newer technologies, the three big areas of investment for insurers continue to be traditional areas of legacy system replacement, business intelligence and portals.

As premiums have grown, so have insurers IT budgets. But despite all the buzz around newer technologies, the three big areas of investment for insurers continue to be traditional areas of legacy system replacement, business intelligence and portals.

Insurers who do not outsource currently are not planning to turn to external partners this year.