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Employment Outlook Continues to Improve for Insurance Technology Sector

Hiring in the insurance technology sector is showing signs of life, and compensation for insurance IT staff is trending upward. But pay for IT managers is sliding.

Job Security

Respondents to the 2012 InformationWeek Insurance IT Salary Survey seem to be feeling more secure about their jobs than they have in the past couple of years. More than one-third (39 percent) of staff reported feeling very secure in their positions, up from 36 percent in 2010. And the same trend is evident for IT managers: 45 percent of this group responded that they feel very secure in their current jobs, up from 40 percent two years ago.

The Search for the 2012
Elite 8 Is Underway

Each year, the editors of Insurance & Technology recognize eight insurance technology executives based on their accomplishments, leadership and vision. This year's Elite 8 will be honored at I&T's 2012 Executive Summit, Nov. 4-7 at the Terranea Resort in Rancho Palos Verdes, Calif.

But even with the economy looking up, both managers and staff have seen cuts in several areas. More than half of staff (55 percent) and 50 percent of managers have received raises of less than 5 percent, and nearly one-fourth of staff have had fewer training opportunities, according to the InformationWeek survey. In addition, just more than 20 percent have seen cuts in benefits.

Nonetheless, according to Leah Hollstegge, manager of Ward Group, a Cincinnati-based insurance consulting firm, insurance IT jobs that support new development are secure. "The jobs that may be less secure are those that are supporting legacy systems or are support positions in older technologies," she says.

Meanwhile, insurance participants in the 2012 InformationWeek survey were divided in their outlook on the future. More than a third (37 percent) of staff say a career path in IT and the potential for salary advancement are as promising as they were five years ago, up considerably from 2010, when only one-fourth (27 percent) felt this way. But more than half of IT staff (53 percent) said their chosen career path and the potential for salary advancement are not as promising, which is still a considerable drop from 2010 levels (67 percent). The upward trend is similar among IT managers, with close to half (45 percent) responding that their field and salary increase potential are as promising as they were five years ago, compared to a third (33 percent) two years before. n

Peggy Bresnick Kendler has been a writer for 30 years. She has been a regular contributor to Insurance & Technology since 1996.

Peggy Bresnick Kendler has been a writer for 30 years. She has worked as an editor, publicist and school district technology coordinator. During the past decade, Bresnick Kendler has worked for UBM TechWeb on special financialservices technology-centered ... View Full Bio

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