IT spend fortifies industry framework

The insurance industry is moving its IT spend towards risk management and compliance instead of discretionary projects. According to independent market analyst Datamonitor, the insurance industry is facing difficult times but the sector is not undergoing a systemic crisis due to regulations and sound portfolio management by the majority of players. IT budgets should be more stable than those in the banking sector with neither robust spending or dramatic budget cuts likely to materialise and spending priorities shifting toward risk management and compliance.