Carriers seek to drive down cost of service, improve pricing and underwriting: Novarica
Boston, MA (July 10, 2018) – The commercial lines sector remains highly competitive despite some pricing improvement in Q1 2018. To stay ahead of the curve, carriers are expanding their business intelligence capabilities to operationalize predictive analytics-increasingly leveraging third-party data in their analyses. In a new report, Business and Technology Trends: Commercial Lines, research and advisory firm Novarica provides an overview of commercial lines carriers’ business and technology issues, marketplace data, and over 40 examples of recent technology investments by commercial lines carriers.
“Agent portals continue to be important for guiding producers to carriers’ risk appetite and for generally easing the process of doing business,” says Martina Conlon, Senior Vice President of Research and Consulting, and co-author of Novarica’s new report. “Replacing core systems to support new product development and improve the consistency and quality of underwriting decisions is also common.”
Key findings of the report include:
- Drones, IoT, robots, and autonomous vehicles are poised to transform the industry. These technologies are reducing the need for on-site adjusters and investigators while greatly improving underwriting and pricing, as well as lowering claims frequency.
- Agent portals remain key to customer acquisition and retention, and direct sales capabilities will be increasingly important for more transactional products and program business.Agents and carriers should be spending their time solving client problems, not taking orders or pushing products.
- Commercial lines carriers are increasingly adopting AI and analytics. Carriers are using AI and analytics in claims, customer services, and underwriting to better predict claims activity, improve customer satisfaction, and improve risk selection and pricing.
A preview of the brief is available online.
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: NovaricaTags: analytics, commercial lines, Novarica, portal