IT spending in the insurance sector: a global perspective

Information technology research firm, Celent estimates that global information technology spending by financial services institutions will reach US$358bn in 2008. According to Celent financial services sector analyst, Jacob Jegher, this represents an increase of 4.5% over 2007. This figure is substantially lower than the 6.4% growth achieved in 2007. Growth rates have dropped across all regions and have contributed to this lower total. European and US financial institutions have been hit particularly hard, and challenges in these regions are contributing to growth declines. The financial crisis and economic uncertainty have financial institutions tightening their belts. Banks in all regions of the world are experiencing difficult conditions. Although the next couple of years will be challenging, Celent expects global spending on IT products and services to grow to $364.5bn by 2010. In the insurance sector, IT spending across North America, Europe, and Asia-Pacific will grow to almost $105bn in 2009. This spending level is approximately 1% higher than that of 2008, which is a slowdown of the 4% growth experienced between 2007 and 2008. European insurers will spend $47.5bn in 2009, versus $34.7bn spent by North American Insurers and $22.4bn spent by Asia-Pacific insurers.