Some quick thoughts for Insurer CIOs and CEOs during budgeting season...

1. Insurance IT Budgeting
QUICK QUOTE

2. For the last 10+ years,
insurers have carefully managed
their IT budgets to be within 3-5% of
written premium

3. Why?

4. If the average expense ratio is
25%...
Expense
Ratio
Loss
Ratio

5. And the average IT expense is 5%...
Expense
Ratio
IT
Loss
Ratio

6. ...then 80% of operating expenses
are on buildings and staff.
Buildings
and Staff IT

7. Which one is likely to create
strategic advantage long term?
Buildings
and Staff IT

8. Would this really be better?
Buildings
and Staff
IT

9. Or this?
Buildings
and Staff
IT

10. The question is not “How much
are you spending on IT?”

11. The question is
“What are you getting?”

12. Insurers are too focused on
the supply of technology,
rather than
the demand for capabilities.

13. Better capabilities create
advantage.

14. www.novarica.com

15. To learn more about what insurers are planning to get
for their 2015 IT spending, pre-register for Novarica’s
free webinar on October 14 at 12pm ET
https://www1.gotomeeting.com/register/138193784