Stamford, CONN. – January 19, 2010 – Faced with the continuation of a soft market in 2010, 93% of insurance carriers surveyed are increasing their investment in automation technologies to improve operational efficiency, according to a recent survey conducted by IVANS, Inc. Adoption of technologies that streamline transactions between insurance carriers and agents will continue to grow in 2010, as carriers look for ways to maintain profitability in a sluggish economy.
“Insurance carriers are shoring up operations and focusing on investments that help them do more with less,” said Clare DeNicola, president and CEO of IVANS, Inc. “In large part, property and casualty insurance carriers reasonably weathered the economic turmoil of 2009 because they stuck to their core businesses. The industry will continue to be under intense financial scrutiny, and most likely, greater regulatory scrutiny, so the markets will look to carriers to make strategic investments that build on existing strengths versus breaking completely new ground.”
Property and casualty insurance carriers plan to invest more resources within existing lines of business (cited by 82% of survey respondents) versus diversifying their product portfolio across lines of business (41% of respondents) in 2010. In addition, respondents are focusing on keeping their existing customers satisfied. Seventy-four percent of carriers are investing in tools that help them better understand and respond to their customers.
While 41% of carriers who participated in IVANS survey are expecting to increase their technology budget for 2010, carriers also noted the following top three challenges to achieving their business objectives:
- Competing priorities (91% of respondents)
- Lack of staff (78%)
- Need to update technology infrastructure (67%)
DeNicola said, “Like most organizations, carriers are working with finite resources and want to invest in projects that will have the greatest impact on their business. Carriers realize they need to make technology investments to generate operational leverage and efficiency.”
IVANS will be hosting a one-hour webinar for carriers on January 21, 2010 at 2 pm EDT to discuss Carrier Automation Trends for 2010 and additional results from our carrier survey. Those interested in attending may register through the Events section on IVANS website at ivans.com/events.
IVANS Inc. provides the property/casualty insurance and healthcare industries with fully managed network, electronic data interchange (EDI) and agency-company interface solutions to help solve complex business issues. Headquartered in Stamford, Conn. and a CMS approved vendor, IVANS serves over 700 insurance and healthcare organizations, more than 30,000 independent agents and 135,000 healthcare providers. With over 25 years of experience successfully managing networks, the company also offers its clients relentless customer service, security solutions, reliable and accessible technical helpdesk support and expert enablement. IVANS, which was formed by 21 insurance companies, also has offices in Tampa, Fla. and Cincinnati, Ohio. For information, visit www.ivans.com.