Datasure Ltd, the Southend-based computer systems subsidiary of the C E Heath Plc insurance broking group, has commissioned an independent survey on the computing costs of Lloyd’s insurance brokers in the London insurance market. Datasure was involved in similar surveys in the mid-1980s. The research organisation J B Associates carried out the survey and the identities of the companies that took part is not disclosed. J B Associates contacted 150 companies of which 13 large organisations, representing 50% of the brokerage market, responded. The findings show that expenditure levels range from 2.6% to 17.2% of operating costs. Among larger brokers, computing expenditure has risen to 11.2% from 8.5% of operating costs since 1986. The survey finds that there is a sharp disparity between firms that share computing resources or use packages, spending an average of 6.0% of turnover and those that did in-house development who spend 15.3% of turnover. The survey shows the largest cost factor by cost group was operations and communications and amounted, on average, to 45% of computing costs. Staff costs account for 72% of the total costs in the applications systems development and maintenance areas. Large firms are spending an average of UKP29,000 per head and small firms an average of UKP25,000. The ratio of computer staff to other staff remains about the same, but the individual ratios range from 1% to 12%. Roger Summers, Datasure managing director, says that, in future, electronic trading will alter computing needs.
