TECHNOLOGY 
IT SPENDING

Information technology (IT) has transformed the financial services industry, making available many products and services that would have otherwise been impossible to offer. The features of these products and services range from asset-backed securities, personal cash management accounts and automated teller machines that were introduced in the 1970s to more recent innovations such as online banking. At the same time, IT has improved efficiency and reduced labor costs.
IT SPENDING OF THE U.S. FINANCIAL SERVICES INDUSTRY BY SECTOR, 2006 (1)

($ billions)



(1) Estimated.

Source: TowerGroup.


  • TowerGroup estimates that the consumer lending business will spend $3.85 billion on IT in 2006, as mortgage and home equity lenders update their processing systems.

IT SPENDING BY TYPE OF PROPERTY/CASUALTY INSURANCE COMPANY, 2001-2005 (1)



(1) Information technology expense per total company full-time employee.

Source: Ward Group.


IT SPENDING AS A PERCENT OF GROSS PREMIUMS WRITTEN BY TYPE OF PROPERTY/CASUALTY INSURANCE COMPANY, 2001-2005



Source: Ward Group.

IT SPENDING BY LIFE, ANNUITIES AND HEALTH INSURANCE COMPANIES, 2001-2005 (1)



(1) Information technology expense per total company full-time employee.

Source: Ward Group.


IT SPENDING AS A PERCENT OF TOTAL PREMIUMS WRITTEN BY LIFE, ANNUITIES AND HEALTH INSURANCE COMPANIES, 2001-2005



Source: Ward Group.