Insurers Expanding Use of Analytics, Gaps Remain Between Large and Midsize Insurers Across the Industry

Fifth Annual Novarica 100 Benchmark: Study of digital, data, and core capabilities leverages data from more than 90 insurers

Boston, MA (July 28, 2020) – Insurers are continuing to mature their analytics capabilities. But while larger insurers and moving forward to pilot AI and machine learning, midsize insurers are still playing catch up with predictive modeling, according to the fifth annual Novarica 100, published today by research and advisory firm Novarica.

“Both property/casualty and life/annuity insurers are expanding the use of analytics capabilities for distribution and marketing as well as underwriting and claims,” said Matthew Josefowicz, President/CEO of Novarica and author of the report. “But we’re continuing to see a maturity gap of 15-30% average between large and midsize insurers across all technology areas.”

These findings are based on analysis of data collected from more than 90 insurer CIO members of the Novarica Research Council using the Novarica 100 Framework, which describes 100 key digital, data, and core technology capabilities delivered with today’s available technology, across the insurance product and customer life cycle.

Key points and findings for property/casualty insurers include:

  • Insurers have increased deployment of most capabilities, especially in marketing and distribution. Customer engagement remains an area where insurers can invest.
  • The gap between large and midsize insurers remains, especially in big data and APIs. These can be complex capabilities with longer paths to maturity and the creation of value.
  • Analytics capabilities remain active areas for pilots. Large insurers are exploring artificial intelligence and machine learning applications, while midsize insurers are piloting capabilities for product design and fraud scoring.

Key points and findings for life/annuity insurers include:

  • Deployment rates are stable overall, year to year. Areas of particular increase include core capabilities in marketing, digital, and underwriting. Large insurers have an average maturity score 18% above midsize insurers.
  • Underwriting data and analytics capabilities are on the upswing. Use of predictive scoring in underwriting increased for all insurers, and a third of large insurers are also piloting predictive scoring for fraud.
  • Chatbots lead pilot activity for both large and midsize insurers. Large insurers are also piloting machine learning; midsize insurers are piloting communication and customer engagement capabilities.

Analysis of the Novarica 100 benchmark data is available in property/casualty and life/annuity volumes at

Report Summary

Rating engines play a critical role in helping insurance companies quickly deliver new products and enhancements to market. This report provides an overview of the available rating systems for US property/casualty insurers. The report contains profiles of five vendor solutions, summarizing the vendor organization, technology used, differentiators, client base, lines of business supported, deployment options, implementation approaches, upgrades/enhancements, and key functionality.

Vendors included: CGI, ClarionDoor, Decision Research Corporation, Duck Creek Technologies, and Oracle.

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. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Its advisory services provide enterprise phone and email consultations on any topic for a fixed annual fee. Consulting services range from assessments and strategic roadmaps to vendor evaluations. Other special programs include a Silicon Valley Innovation Tour, InsureTech Summits, online learning courses, and more. For more information, visit

Source: Novarica

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