Business Focus is a weekly column providing at-a-glance statistics and commentary on spending priorities and trends in particular sectors. This week we look at the life insurance industry.
The life insurance industry is undergoing a quiet IT revolution with core industry processes being computerised at a rapid rate.
Life insurance products are often sold to customers by independent financial advisers, and it is in the relationship between life companies and IFAs that the transformation in working practices is most obvious.
Four years ago, just 5% of new business was being transacted electronically by IFAs, but nowadays the figure is around 80%. This is reflected in the above average spending on IT among large life insurers, with spending per desktop reaching £10,998 a year, against a UK business average of £8,455.
This is not matched by an equivalent investment among smaller life firms. Here, the average spend of £3,055 per desktop is slightly down on the UK average spend among SMEs of £3,132.
The analysis is based on Computer Weekly's database of more than 60,000 IT budget holders, twice yearly user IT expenditure surveys, CBI/Kew senior executive surveys, government surveys, government demographic data, HM Treasury economic forecasts and Cambridge Ecomometrics industry sector forecasts.
Further details www.kewassociates.co.uk
This was first published in June 2006