Personal Lines Insurers Leading the Way in Industry Experimentation with AI and Digitalization

Carriers investing in InsurTechs to accelerate learning and diversify R&D efforts: Novarica

Boston, MA (Sept. 10, 2019) – With low interest rates and high competition for clients and producers, personal lines carriers are investing in InsurTech 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 an overview of personal lines provider business and technology issues, market trends, and more than 15 examples of recent technology investments by personal lines insurers.

“Personal lines insurers often have existing capabilities for reporting and analysis, but they are now expanding their business intelligence (BI) capabilities to include predictive analytics and AI,” said Chuck Ruzicka, Vice President of Research and Consulting and co-author of Novarica’s new report. “Many are applying predictive models to the underwriting process through application of business rules and experimenting with machine learning to enhance existing models.”

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. Increased availability of personal data from social media is facilitating use of AI.
• 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. Generational cohorts like Millennials and Gen Z expect digital experiences.
• 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 report is available online.

Summary

Plan providers are focused on driving down costs and attracting new clients, all while retaining existing clients and assets through improved insights and investment performance.

This report provides an overview of defined contribution retirement plan provider business and technology issues, data about the marketplace, and 12 examples of recent technology investments by insurers offering defined contribution retirement plans.

Topics:

• 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