Consumer experience expectations and drive for greater efficiency leads insurers to diversify R&D efforts and expand investment in innovation: Novarica
Boston, MA (Sept. 18, 2018) – With low interest rates and high competition for clients and producers, personal lines carriers are investing in InsureTech to get ahead with an emphasis on the digitalization of processes, digital-first products, and targeting digital consumers. Increasingly, carriers are prioritizing the improved use of business intelligence (BI) capabilities, such as analytics and AI, as well as Internet of Things (IoT) data. In a new report, Business and Technology Trends: Personal Lines, research and advisory firm Novarica provides and overview of business and technology issues, market trends, and more than 50 examples of recent technology investments.
“Consumer experience expectations, combined with the never-ending drive for increased efficiency, are spurring carriers to increase digitalization of their businesses,” said Chuck Ruzicka, VP of Research and Consulting and co-author of Novarica’s new report. “In personal lines, which is perceived as a commodity price-driven business even if it doesn’t have to be one, this is especially true. Digital processes offer both an opportunity to rethink existing processes and a means of improving accuracy and efficiency.”
Key findings of the report include:
- Personal lines lead the way in industry experimentation with AI. A high transactional volume combined with relative simplicity makes personal lines a natural choice for AI usage, especially in claims.
- Personal lines also lead in digitalization. Carriers are pushing the envelope in digital self service. Carriers are also designing products for digital processes and targeting digitally oriented consumers.
- Insurers are preparing for a very different world. Carriers are hedging their bets against autonomous vehicles by providing a broader range of services to diversify income.
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 of 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: business intelligence, Digital Innovation, Digital Insurance, InsurTech, Internet of Things (IoT), Novarica, technology investment