Specialty Insurers Look to Improve Flexibility of Distribution and Underwriting

Additional investments in reporting tools, agent/customer access, and unstructured text ingestion used to differentiate in competitive marketplace: Novarica

Boston, MA (May 21, 2020) – Specialty insurers are now differentiating themselves in a competitive marketplace through investments in distribution (especially new business submission), product development, underwriting, and claims. 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 about 20 examples of recent technology investments by specialty carriers.

“To accommodate a wide variety of risks, the specialty market requires a significant amount of operational flexibility to meet the needs of the insurer and the insured,” said Mitch Wein, Senior Vice President of Research and Consulting and co-author of Novarica’s new report. “Insurers must be able to test new specialty lines without large up-front capital investments and determine profitability, driving the need to invest in flexible technology.”

Among the key findings of the report are:

  • Insurers are pursuing long-term data strategies. Specialty insurers are prioritizing reporting tools and investing in data science capabilities to optimize their portfolios and improve underwriting. Ingestion of unstructured text is a newer area of focus leveraging AI, ML, and NLP.
  • Improved underwriting and product development flexibility are key considerations. Insurers 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 and building out their own broker platforms. Digital broker platforms and API catalogs are also assisting in automation.

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

Report Summary

Specialty insurers are 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 insurers’ business and technology issues, data about the marketplace, and about 20 examples of recent technology investments by specialty insurers.

Topics

  • Recent market and financial trends
  • Active insurer landscape
  • Technology issues, priorities, and examples by functional area
  • Top technology priorities for 2020 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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