NEW YORK – In a new sector report published today, Business and Technology Trends: Personal Lines, research and advisory firm Novarica looks at recent technology initiatives by personal lines insurers and highlights top issues for 2011.
“With a continuing soft market, and very competitive conditions creating profitability pressures, personal lines carriers are focusing on growth strategies, expense reduction, and improving underwriting results,” comments Karlyn Carnahan, Novarica principal and lead author of the report. “Top initiatives for personal lines carriers include business intelligence, policy admin systems replacement, claims systems replacement, and portal functionality for both agents and insurers.”
Novarica�s research finds that personal lines insurers are focusing on four key areas in their technology strategies, including:
- Connectivity. Extending functionality to the agents continues to rise in importance. It�s less and less about differentiation and more and more just the price to pay to be in the game.
- Policy. Consider upgrading your policy admin system to increase efficiency and flexibility. Look for highly configurable solutions with product configurators, simple rules and tools for launching new rating algorithms, and the ability for business units to make their own modifications.
- Business Intelligence. Start with a data-quality initiative to examine data warehousing, operational data stores, and appropriate data marts. Then overlay a business intelligence tool.
- Claims. Automate processes to streamline claims management and improve customer service.
This report provides an overview of personal carriers� business and technology issues, data about the marketplace, and over 30 examples of recent technology investments by personal lines insurers. The report is available at Novarica�s website at http://www.novarica.com/business-and-tech-trends-personal-lines.
Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives and project teams. The company delivers its service through published research, retained advisory services, and project-based consulting. For more information, visit www.novarica.com.