Editors Note

Robert F. Kennedy, in a speech in Cape Town, South Africa, in 1966, reportedly said: There is a Chi-nese curse which says, May he live in interesting times. Like it or not, we live in interesting times.

While widely held as Chinese and ancient, according to sources who research such things, the well-known phrase apparently is more likely an American invention and modern. The curse stems from the meaning implied in interestingeither as a synonym for harmful or as a euphem-ism for a world so complex life becomes difficult and frustrating.

But just as the generally accepted origins of the phrase seemingly are bogus, so, too, is implying interesting automatically equates to something bad. As with most things in life, its what we make of it. The Chinese recognize this, too. In the Chinese language, Im told the symbol representing crisis is a combination of the figures for danger and opportunity.

As we start the new year, times definitely are interesting. Insurers have begun to be more strategic than tactical on projects. Solutions providers Ive spoken with indicate while buying hasnt surged as yet, insurer appetite is growing quickly and looks like it wants to be sated soon. Technology options abound. Although the hurdle will be overcoming insurer paranoia, as one vendor put it, dispelling fears borne of past failures, spending forecasts are on the upswing in general (see On a Roll, p. 10) and in policy administration in particular (see Technology for Policy Administration special supplement). Policy admin is perhaps one of the best litmus tests, since insurers usually are highly gun-shy about attempting such projects and with reasonthat same vendor just cited compares implementing a new system to doing a heart transplant on a runner who is in the middle of a marathon.

Datamonitor, one of the analyst firms participating in the cover story, issued a new report, North American Insurance Technology Spending Strategies, which presents the views of 100 insurance IT decision-makers regarding strategy drivers and investment areas for 2005. In announcing the study, Datamonitor wrote: Having rebounded to a profitable and stable position, the

North American insurance industry is reconsidering the use of technology to maintain a competitive edge. . . . IT investment is now perceived as being driven by the need for efficiency gains, rather than simply for reduction of operational costs. Forty-three percent cited cost control as a primary driver for their IT strategy, compared to 50 percent in the 2003 survey [while] the number responding to efficiency rose from 34 percent in 2003 to 54 percent this year. The firm adds the shift toward efficiency as budgets are increasing indicates insurers are thinking longer term and strategically.

If this all isnt interesting, I dont know what is. Is there risk involved? Of course. But where theres risk, theres rewardjust ask the guys on Wall Street. And Id bet even Confucius would agreethat supposed curse really might be a blessing in disguise.

With best wishes for a happy, healthy, prosperous 2005,

Sharon S. Schwartzman
Editor-in-Chief