Insurers are investing in InsurTechs to diversify R&D efforts, using AI to speed the claims process, and designing products for digital processes and targeting digitally oriented consumers
Boston, MA (Sept. 29, 2020) – Social changes brought on by the pandemic have prompted personal lines insurers to look for ways to improve the customer experience while creating competitive advantage through enhancements to products and services. Many insurers are fast-tracking digital initiatives to respond to immediate customer and agent needs and improve internal efficiencies. In a new report, Business and Technology Trends: Personal Lines, research and advisory firm Novarica provides an overview of personal lines carriers’ business and technology issues, data about the marketplace, and more than a dozen examples of recent technology investments by personal lines insurers.
“Shelter-in-place orders due to COVID-19 have led to reduced premiums through rebates and refunds as well as a lack of new auto and home sales,” said Martina Conlon, Executive Vice President of Research and Consulting and co-author of Novarica’s new report. “However, it has also led to reduced claims frequency. Reduced business activity, claims frequency, and premium volume means insurers must revisit existing models and their underlying assumptions.”
Among the key findings of the reports are:
- COVID-19 has led to reduced premiums but also reduced claims frequency. Prior technology investments have resulted in enhanced claims handling, rating, and underwriting. Insurers need to revisit their models and the underlying pre-COVID assumptions.
- 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. The increased availability of personal data from social media is facilitating AI usage.
- Personal lines also lead in digitalization. Insurers are pushing the envelope in digital self-service. Insurers are also designing products for digital processes and targeting digitally oriented consumers. Generational cohorts like Millennials and Gen Z expect digital experiences.
Click here for the table of contents or to access the report.
Report Summary
Personal lines insurers are investing in InsurTechs to accelerate learning and diversify R&D efforts, using AI to speed the claims process, deepening their knowledge of the customer, reducing earnings volatility through analytics, and improving self-service capabilities. Core systems remain a high priority to establish a base for future capabilities.
This report provides an overview of personal lines insurer business and technology issues, data about the marketplace, and more than a dozen examples of recent technology investments by personal lines 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
Tags: Artificial Intelligence (AI), coronavirus, digitization, emerging technologies, epidemic, InsurTech, Novarica, personal lines, trends