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Group Insurers Investing in Tech to Drive Customer Acquisition and Retention, Says Novarica

Group and voluntary benefits are a growth market for life insurers, and technology is becoming a key competitive necessity as they seek to streamline customer onboarding and use analytics to drive better performance in underwriting and claims. In a new Business and Technology Trends Report, Group Life/Annuity/Voluntary Benefits, research and advisory firm Novarica provides an overview of group benefit providers' business and technology issues, data about the marketplace, and several named examples of recent technology investments by group benefit providers.

"Group and voluntary benefits carriers may better understand employers and plan sponsors than individual participants," said Rob McIsaac , Executive Vice President of Research and Consulting, and lead author of Novarica's new report. "this leads to challenges across fraud detection, member conservation, and to product design. In some areas, voluntary benefits providers are ahead of their group peers in leveraging data and analytics."

Among the key findings of the report are:

  • Sales growth is robust for voluntary lines. Critical illness, accident, and term life products are showing strong growth.
  • Analytics are widely used for voluntary products. Applications include enrollment, identifying claims fraud, member conservation, sales reporting, and underwriting, among others.
  • With no clear standard for group benefits information exchange, carriers are considering their next move. ACORD has proposed an enrollment standard-but with it based on one vendor's offering, traction is uncertain at best. 
  • Insurers are still focusing on issues of product design, enrollment, marketing, and continuing improvement of administrative systems. Innovation is still taking a back seat to execution, though carriers are expressing increased concern about the need for "digital capabilities." 

Please contact media@novarica.com or call Victoria Spitz at 833-668-2742 Ext. 130 for more information.

 


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