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The Impact of Information Technology Management Practices on the Performance of Life Insurance Companies

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Book cover Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management

Part of the book series: Innovations in Financial Markets and Institutions ((IFMI,volume 11))

Abstract

Life insurance firms are increasingly reliant on information technology (IT) to maintain and enhance operating efficiency as well as to purse new strategies such as direct delivery, customer segmentation, and product innovation. The size of the commitment to IT by the average life insurance company is staggering: one study estimates that life insurance companies spent as much as 5% of premium income on IT in 1996 (Bell, 1998) and that IT represented over 50% of insurance company capital expenditure throughout the 1980s (Francalanci and Hossum, 1998). As one observer succinctly stated, “today you can’t do anything in a life insurance company without technology” (Harnett, 1997).

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Authors
  1. Lorin M. Hitt
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Editors and Affiliations

  1. Department of Insurance and Risk Management The Wharton School, The University of Pennsylvania, USA

    J. David Cummins

  2. Department of Finance The Wharton School, The University of Pennsylvania, USA

    Anthony M. Santomero

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© 1999 Springer Science+Business Media New York

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Hitt, L.M. (1999). The Impact of Information Technology Management Practices on the Performance of Life Insurance Companies. In: Cummins, J.D., Santomero, A.M. (eds) Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management. Innovations in Financial Markets and Institutions, vol 11. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5045-7_7

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  • DOI: https://doi.org/10.1007/978-1-4615-5045-7_7

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-7293-6

  • Online ISBN: 978-1-4615-5045-7

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