More carriers using data, AI, predictive analytics, and business rules to improve pricing, underwriting: Novarica
Boston, MA (July 27, 2019) – Commercial lines has turned more of its attention to leveraging technology effectively as data mined from drones, IoT, telematics, and third-party data providers has become an increasingly powerful tool. Commercial lines carriers are continuing to expand their business intelligence efforts to operationalize predictive analytics, and create models to improve underwriting insights, apply pricing more consistently, and improve claims activities. 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, data about the marketplace, and several examples of recent technology investments by commercial lines carriers.
“More carriers are using data, AI, predictive analytics, and business rules to align pricing actions with risk quality to apply underwriting expertise consistently and make better underwriting/pricing decisions,” said Martina Conlon, Executive Vice President of Research and Consulting and co-author of Novarica’s new report. “They are also automating workflows to improve consistency and efficiency, in some cases using robotic process automation (RPA) to do so.”
Key findings of the report include:
- Commercial lines carriers are investing most heavily in distribution, across digital, data, and core. Support for agents remains key to customer acquisition and retention, and direct sales capabilities will grow more important for small business products and program business.
- Carriers are leveraging new data sources, especially in underwriting and claims to some extent. Carriers are obtaining data from drones, IoT, and telematics (automotive and commercial property) in addition to data from external third-party data providers.
- Commercial lines carriers are increasingly adopting AI and analytics. Carriers are using AI and analytics in claims, customer services, and underwriting to predict claims activity better, improve customer satisfaction, and improve risk selection and pricing.
A preview of the report is available online.
Commercial lines carriers are seeing some premium increases, seeking growth through expanded jurisdictions and new products, and adopting analytics more broadly. Carriers are seeking to drive down the cost of service, refine pricing and underwriting, and pursue growth in this fiercely competitive market, especially in the small commercial and program space.
This report provides an overview of commercial lines carriers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by commercial lines carriers.
- 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.
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: commercial lines, Novarica, trends