Insurers have been told to improve IT management, after a survey revealed the sector is failing to meet its own return on investment (ROI) targets, according to research released today.
The research, part of a survey undertaken by Datamonitor and commissioned by SunGard iWORKS ,was based on i interviews with 100 European insurers.
It revealed that insurers, driven by concerns around cost, are seeking increasingly sophisticated means to assess IT projects prior to initiation.
According to the research more than 90% of insurers claim to use ROI measurements to justify IT projects. But, they are not allowing enough time for the projects to be implemented.
Daniel Mayo, research director financial services technology at Datamonitor, said, “These findings highlight the need for strategic justification over and above simple ROI calculations in the insurance sector.
“The more surprising element, however, is the sheer extent to which insurers undertake projects that do not stack up to their own criteria. Clearly, this draws attention to the need for a wider understanding of what drives insurers' IT investments as well as greater project discipline in the insurance sector.”
