The January 2023 Aite-Novarica Group report, based on a survey of 62 P/C insurer CIOs and tech leaders, shows IT spending rising slightly from 4.1% to 4.2% of premium in 2023, driven by staff costs and vendor contracts. Despite rising expenses, strategic initiatives like core system transformation, especially among midsize insurers, remain on track. Staffing ratios are stable, though talent shortages and large project portfolios are top challenges, followed by aligning IT with business needs. Security concerns are growing, with over 40% citing it as a top challenge, but budget allocation has not increased proportionally.

Join for free to read