Insurers are upgrading policy administration systems, as well as implementing data quality initiatives and reporting tools used to differentiate in a competitive marketplace
Boston, MA (May 31, 2021) – Specialty insurers have traditionally made less use of automation than insurers in other sectors. They 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 recent examples of technology investments by specialty carriers.
“In a competitive environment, rates will continue to decrease in many lines of business, putting even more pressure on insurers to find efficiencies,” 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 significant 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. Ingesting 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 accelerate entry to profitable niches.
- Specialty insurers are investigating automation support for ingesting new business application documents and building out 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
To enable rapid entry into profitable niches, 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 2021 and beyond
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 150 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. For more information, visit www.novarica.com.
Source: Novarica
Tags: data, Novarica, Policy Administration Systems, specialty lines, trends
