Long-Term Data Strategies, Improved Underwriting and Product Development Key for Specialty Insurers

Investments in distribution, product development, underwriting, and claims used to differentiate in competitive marketplace: Novarica

Boston, MA (May 14, 2019) – Technology priorities for specialty insurers span distribution, product development, underwriting, and claims, as changing technology continues to force carriers to evolve to compete. In a new report, Business and Technology Trends: Specialty Lines, research and advisory firm Novarica provides an overview of specialty carriers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by specialty carriers.

“Specialty carriers are beginning data quality initiatives and implementing data warehouses, operational data stores, and appropriate data marts,” said Eric Weisburg, Vice President of Research and Consulting and co-author of Novarica’s new report. “Reporting tools are a high priority for the business to run ad hoc reports and easily gain insights. While predictive modeling is still relatively nascent, specialty carriers are planning ahead to make sure they will be ready when the business says go.”

Specialty lines technology priorities, 2019-20 (Novarica)

Specialty lines technology priorities, 2019-20 (Novarica)

Among the key findings of the report are:

  • Carriers are pursuing long-term data strategies. Specialty carriers are prioritizing reporting tools and investing in data science capabilities to optimize their portfolio and improve underwriting.
  • Improved underwriting and product development flexibility are key considerations. Carriers are upgrading to highly configurable policy administration systems to improve underwriting and enable product development flexibility to speed entry to profitable niches.
  • Specialty insurers are investigating automation support for ingesting new business application documents, although these solutions are still immature. Digital broker platforms and API catalogs are also assisting in automation.

A preview of the brief is available online.

Summary

Specialty carriers have traditionally made less use of automation than insurers in other sectors. They are now differentiating themselves in a competitive marketplace through investments in distribution (especially new business submission), product development, underwriting, and claims.

This report provides an overview of specialty carriers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by specialty carriers.

Topics include:

  • Recent market and financial trends;
  • Active insurer landscape;
  • Technology issues, priorities, and examples by functional area;
  • Top technology priorities for 2019 and beyond.

Click here for the table of contents or to access the report.

About Novarica

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: Novarica

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