2014 Priorities Checklist: What’s on Your Radar?
Karen Furtado | April 21, 2014
As one would expect, there is a strong linkage between the most pressing P&C business solution projects and the investments currently being made in technologies and tools to support them. SMA recently looked closely at these priorities analyzing them to understand the key drivers and focus areas for P&C insurers in 2014.
In line with SMA’s observations from working with insurance companies of multiple sizes in the personal lines arena, insurers are highly focused on the customer—both the insured and the agent. As the EVP of one regional insurer recently expressed to me, “We will make it easier for our customers to do business with us. We want the choice to be a no-brainer.” In light of this focus, it is no surprise that personal lines insurers are investing heavily in portals and mobile apps.
In 2014, one out of every two personal lines insurers is replacing or enhancing mobile apps and over a third of personal lines insurers will replace or enhance agent and insured portals, with a goal of being able to personalize and manage preferences. The momentum moves well beyond submissions to the expansion of sales and service activities, including self-service capabilities.
There is a significant effort to automate underwriting and increase the percentage of straight-through-processing. Many insurers have implemented new policy and billing systems and are now moving on to claims, where the capabilities are behind for meeting service-level expectations.
There is a notable push to capitalize on internal data and expand the use of external data. This data drive is fueling investment in underwriting and policy administration systems so that business intelligence, predictive analytics, master data management (MDM)/data warehousing, and big data analytics can be leveraged effectively.
In the commercial lines segments of the business, priorities are being placed on data and analytics, and emphatically on core systems replacements or enhancements. An overwhelming 92 percent of those insurers that are writing pure commercial lines are planning to replace or enhance their policy administration systems. It is clear that the pressure is on. Modernization of core is essential—the foundational move that makes it possible to transform and innovate.
It is undeniable that a modern core system is now a must. The number of companies replacing or doing major enhancements on policy administration systems is the highest it has ever been. While policy administration is indeed a significant investment for insurers, it has become a major growth lever in commercial lines—enabling the insurers equipped with modern systems to handle program business and deliver effective, timely customer documents—capabilities that were simply not possible with their older systems.
At SMA, we are sensing that the industry is gaining clarity about the role for big data as they broaden their definition and the scope of the role data will play in their future strategies and successes. Some would even say that the ability to incorporate and exploit big data could one day be among the survival criteria.
In personal lines, big data is reported to be a key area of focus, in line with the prioritization of tools and technologies around the whole customer experience. In commercial lines, the top four technology and tool priorities all relate to data—predictive analytics, business intelligence, big data, and MDM/data warehousing.
In some ways, that is not surprising, with the explosion and availability of external data and the increasing understanding of the impact on decision processes at every level of the business. In other ways, it is surprising and encouraging to see how the industry is moving rapidly to gain advantage. The days of the tortoise playing catchup are forever gone and we all know why.
(Karen Furtado, a partner at Strategy Meets Action (SMA), is a widely recognized expert in the core systems space. She has knowledge of policy administration, rating, billing, and claims, and deep understanding of distribution and emerging technologies like social media, cloud/SaaS, and collaboration. Reach her at email@example.com.)
- Electronic Chat with Larissa Tosch
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Medical Malpractice Insurers Investing in Analytics and Emerging Tech in Face of Market Pressures, Says Novarica
- Insurtech AI Leader Betterview Appoints Dan Shoham, PhD, as Chief Science Officer
- Vermont Mutual Insurance Group Selects One Inc for Digital Payments
- Insurers Embracing Machine Vision for Underwriting and Claims, Says Novarica
- Nationwide partners with Slice Labs to develop on-demand auto insurance for rideshare drivers
- AM Best Requests Comments on Draft Criteria: Scoring and Assessing Innovation
- Majesco Acquires Insurance Software Business in India
- MEMIC Scholarship for Families of Injured Workers Now Accepting Applications
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
There are so many great advances in the area of smart homes and buildings, it makes me wonder what the actual impact has been, or what I might have... READ MORE
This month, the ITA celebrates Insurance Careers Month and encourages carriers, brokers, agents and our industry associations to plan their own... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE