A recent Ward Research Center survey of senior management at insurance carriers revealed that maintaining profitability continues to be a challenge and a primary concern for companies.

Profitability is challenged by volatile investment returns, the competitive environment, and uncertainty surrounding compliance issues, according to Ward Group. .

Companies have increased spending for information technology and product development, Ward Group found. Among property/casualty insurers, 12 percent of respondents reported significant increases in IT spending from 2009 to 2010 while 38 percent of P&C insurers reported moderate increases. (Significant increases are defined as 15 percent or greater; moderate increases are defined as being between 3 and 15 percent.) Those were the largest increases in spending among the 17 functions rated by Ward Group.