Report includes real-world examples from 35 different US Annuity Writers
October 15, 2010 (NEW YORK) – In a new sector report published today, Business and Technology Trends: Individual Annuity Insurers, research and advisory firm Novarica looks at recent technology initiatives by individual annuities lines insurers and highlights top issues for 2011.
“Annuities carriers are defining themselves less by their wide range of benefits and more by their technological advances,” notes Don Desiderato, a principal in Novarica’s insurance practice and lead author of the study. “The annuity marketplace is changing rapidly, between its reinvention following the market crash of 2008 and consumers’ growing interest in private alternatives to social safety networks like Social Security. Technology is the best way for carriers to adapt.”
Novarica’s research finds that individual annuities lines insurers are focusing on ten key areas in their technology strategies, including:
- Straight-Through Processing (STP). Receiving business electronically through STP reduces the number of touch points required by the back office, lowers Not in Good Order rates, and builds stronger relationships with distributors. The goal for STP is either to build out new technology or to increase the participation rate among existing distributors.
- Improved speed-to-market. The rapidly changing marketplace requires more operational flexibility. The faster a new product can be defined and developed, the easier it is to move into a profitable niche.
- More sophisticated actuarial systems. Risk can be better mitigated through improved and more frequent hedging. Advanced actuarial systems also allow for improved pricing, reserves, capital management, and statutory reporting.
The report provides an overview of business trends and data, analyzes the players in the marketplace, and provides examples of over 35 recent technology initiatives by specific individual annuities lines insurers. The report is available at Novarica’s website at http://www.novarica.com/business-and-technology-trends-individual-annuity-insurers/
Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives. www.novarica.com.