infonet-economy

The dilemma of insurance IT: the investment trap The starting point for this study is the question of how IT can contribute to achieving an efficiency increase in insurance companies. The answer is that IT can play a role in two areas. First, IT costs that are often perceived to be fixed - so-called non-discretionary IT costs2 - can be cut without a correspondent reduction in IT capabilities. Second, reinvestment of efficiency gains from better-structured operations - usually around one-half of efficiency gains - can consolidate both IT capabilities and core business. Ultimately this has a major impact in the form of improved financial results.