Insurance carriers have adopted a strategy of "inspired frugality" in relation to their spending on security, according to Forrester senior analyst Ellen Carney.

Some in the agent world might say, "It's about time," but carriers have become more attentive to the needs of their independent agents because they realize it is a competitive differentiator.

Regardless of how insurance carriers reach customers--whether it's as a direct writer or through the independent agent channel--the one thing all insurers have in common is a passion for customer retention.

Many companies find themselves caught in a vicious circle. They need specialized capabilities in building new applications but don't have the available talent in-house to develop those systems.

A look at the IT outsourcing landscape for insurers, which recently was released by Novarica, shows midsize carriers turn to external partners for more expensive project-based work and have yet to adopt the philosophy of a blended sourcing strategy.

For some it's a battle, for others it's a complement. The direction of personal lines insurance is a source of continuing debate as insurers define and hone their channel strategies between agent-based sales and direct to the consumer.

Just as a journey of a thousand miles begins with a single step, achieving the best resolution to business problems often begins with identifying the right software solution and the vendor that can provide that product.

Blindly digging through data is how the insurance industry used to operate. Today, with predictive models and analytics, carriers have something to guide their efforts to make the best decisions possible.