The property/casualty cycle is turning, prices are softening, and underwriting results are likely to deteriorate. Celent believes that technology offers insurers (if not a cure) a way to ease their pain� and perhaps gain a competitive advantage along the way.
November 24, 2004, San Francisco, CA, USA
In a new report, Technology and the Soft Property/Casualty Market, Celent points out that though the rising tide of the 2002�2004 hard market lifted all underwriting ships, it became apparent by the second half of this year that the tide had turned and prices were softening.
“In response, each insurer will have to rely on its own blend of business processes, enabling technology, and execution skills,” comments Donald Light, senior analyst in Celent’s insurance group and author of the report. “The good news is that currently available technologies will support optimal business processes and superior execution in pricing, claims, and reinsurance programs. Taken together on a foundation of data mastery solutions, these technologies provide insurers with a real chance to counter the effects of a softening market.”
The report explores how an insurer can use technology to lessen the underwriting cycle�s impact and to gain at least a relative competitive advantage. It looks specifically at three core processes that arguably have the biggest impact on underwriting results: pricing, claims, and reinsurance. The report also identifies specific kinds of technologies and vendors for each of these areas and suggests how insurers and vendors should respond to the changing market conditions.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com or contact [email protected]