Holding steady is not ordinarily seen as a sign of strength, but with everything that has gone on in the financial services world of late, the fact that insurance IT budgets are able to stay the course says something positive about the industry and the direction it is headed.

"Budgets are holding at about three percent of premium," says Matt Josefowicz, director of the insurance practice at Novarica. The research and consulting firm joined up with the Insurance Accounting & Systems Association (IASA) for a survey of IASA membership on a variety of technology topics.

He points out the three percent figure has been the overall average in the industry in recent years and believes it is a good sign the figure is remaining intact. "I think it's a confirmation of the trend we've seen the last couple of years–people are spending on strategic projects and they are viewing IT as not so much a cost center but as a true operational expense and are willing to make investments to achieve new business capabilities," he says.

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