In an industry rife with operational and budgetary scrutiny, insurance companies could benefit from deploying a service-oriented architecture, according to a new report from research and consulting firm Celent.

For insurance companies, realizing IT efficiency and optimization must go beyond simply purchasing new systems. These organizations must build systems that work together and in a larger infrastructure.

"“It will be easier to achieve these goals by using a service-oriented architecture, industry standards, and easily configurable systems, but a Model Insurer knows the challenge is not just about the technology, but also about the way a system is tested and used by the enterprise," the report states.

A service-oriented architecture will benefit budget-strapped insurance companies because it positions legacy system components for reuse, according to the research firm.

However, according to a recent CIO Update report, chief information officers are finding it challenging to sell the rest of the organization on an SOA. CIO Update urges executives to "demystify" the technology for business colleagues. They can do so by relaying SOA's benefits of increased productivity, by preventing staff from having to build more systems, and innovation, through the use of web-based apps and cloud mobile solutions.