Novarica Blog

Rob McIsaac

In addition to my breakout session on Regulation Reform, I had the opportunity at the Research Council to present on IT Organizational Strategy, with a particular focus on what it takes for CIO’s to get, and maintain, a seat at the table with C-suite peers.

The discussion centered on a series of actions that CIO’s can take to allow them to become true business partners who can add significant value to carriers’ strategic planning efforts. These actions include developing improved understanding of communications styles, cultural issues, and organizational dynamics, as well as tactics for embedding technology into the business planning efforts for insurers.

Council members shared insights on what has worked, and what hasn’t, in their organizations. One of the key comments from the group focused on the importance of being “engaged” when the business conversation on problems or opportunities begin—being absent in the dialogue until a solution has already been selected is problematic on a number of levels.

Openness and transparency were also topics of high interest. There was a clear recognition of the importance of investing time to build relationships and trust with C-level peers.

In an era when IT is sometimes viewed as commoditized, and the understanding of how technology “can work” is being influenced by consumer-oriented (outside) experiences, the IT presence at the strategic table has never been more important.

Tom Benton

I recently joined Novarica as a Principal after serving five years as VP, Technology (CIO) at Navy Mutual, during which time I was a Novarica client and active Research Council member. One of the highlights of my time as a client was attending the Novarica’s Research Council meeting in Providence a few years ago.

As a CIO, I found that the Research Council meeting is a great opportunity to interact with and learn from peer insurance IT execs.  The agenda included a number of topics of interest, but the interaction with other IT insurance leaders is unique – personally I took away a number of ideas from my peers on issues we were facing at the time, including how to tackle challenges with core system replacements, ways to better meet the needs of business units, and ideas on improving engagement of business leaders in the IT process.

At this year’s meeting, held last week in Providence, RI, Novarica analysts presented recent research on Big Data/Analytics, Quick IT Benchmarks and IT Operational Strategy along with breakout discussions on hot topics like Climate Change and Catastrophe Modeling and how the Affordable Care Act is affecting carriers.  There was still ample time at the dinner the previous night and during breaks for interaction with peers.

Some of the comments from CIOs attending the meeting were:

• “The annual Novarica Council meeting provides two key benefits: first, the research presented by Novarica analysts contains valuable and relevant information that stimulates discussions amongst peers; and second, it is provides a unique opportunity to hear first-hand what other companies are doing with technology.” – Judith Haddad, EVP and CIO/CTO of Patriot National Insurance Group
• “What a great tool to have in my CIO toolbag: other CIOs who share and discuss issues in a practical and pragmatic fashion.   It’s a large enough group to get multiple perspectives, but focused enough to have tangible impact and value.” –  Richard Wiedenbeck, SVP of IT at Ameritas.

Notes from the meeting are available to Research Council members at www.novarica.com/councilMeetingReport2013.  Membership in the Research Council is free, and there are no registration fees required to attend Research Council meetings. Over 300 members participate through the Council in Novarica research.  Senior IT executives can request their free membership here.

Martina Conlon

In addition to my presentation on big data [link to prior post] at last week’s Research Council meeting, I also facilitated a breakout session on climate change and cat modeling. We reviewed weather trend information-and agreed that bad weather is the new normal we have to plan for. Most participants leverage cat modeling services from RMS, Air, and/or EQECAT for reinsurance planning, and several use the models for underwriting, as well. Larger carriers used more than one modeling vendor and a few also apply their own custom models. Several participants raised issues with the quality and level of documentation with some models, and expressed concern that some vendors position their offering as a black box.

We then moved on to discuss DR. Most carriers felt their DR plan was solid, but that they have fine-tuned it after each episode. Most participants said they proactively contact policyholders or agents with advice and tips prior to a weather emergency. Many carriers verify weather related claims with weather service information, with claims adjusters manually researching the information on the web. All carriers agreed that leveraging technology to anticipate weather events, appropriately price accounts, and minimize losses was critical for their organization moving forward.