This paper presents the results of a numerical analysis of nitride-based edge-emitting lasers with an InGaN/GaN active region designed for continuous wave room temperature emission of green and blue light. The main goal was to investigate whether the indium thin oxide (ITO) layer can serve as an effective optical confinement improving operation of these devices. Simulations were performed with the aid of a self-consistent thermal-electrical-optical model. Results obtained for green- and blue-emitting lasers were compared. The ITO layer in the p-type cladding was found to effectively help confine the laser mode in the active regions of the devices and to decrease the threshold current density.