As I was reading our latest report: Benchmarking the “New Normal” 50 Advanced Capabilities for Property & Casualty insurers, it reminded me of a few famous quotes from management consultant, author and educator Peter Drucker. Below I have highlighted a few of his quotes and how they relate to the insurance industry.
“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.”
As technology evolves it’s going to have a revolutionary impact on the insurance industry over the next few years. Some of these areas include the “Internet of Things,” Social Media, Big Data, Cloud, Mobile, Security and Digital. With the rapid changes in technology-enabled capabilities, it’s imperative for organizations to have access to the latest research and subject matter experts to stay on top of the latest trends.
“The best way to predict your future is to create it”.
We’re seeing larger insurers creating their own future by widening their lead in advanced capabilities in analytics, data, digital channels, modern applications and innovative business practices. In addition, some midsize insurers are also creating their own future by deploying more advanced capabilities than their peers.
“What gets measured gets improved”
As saavy insurers start deploying new capabilities in underwriting, product, distribution, analytics, etc., it’s vital for them to be able to track their own progress. Novarica is helping insurers to “measure and improve” their own initiatives with our new benchmarking tool.
“The purpose of business is to create and keep a customer.”
Technology is playing a vital role for Property & Casualty insurers in creating and keeping customers. Below are a few advanced capabilities being deployed by insurers in 2015 to help with these efforts.
- Customer: Mobile app to view customer relationship details, balances, key documents, etc.
- Distribution: Mobile app/mobile optimized web for producers to provide access to customer, book of business, or sales materials
- Product: Analytics-driven product design
- Product: Products designed to optimize buying/selling experience through one or more of the following: (a) use of pre-fill data, (b) elimination of unnecessary questions, (c) streamlined underwriting process matched to control of risk/coverage levels
- Distribution: E-Signature
- Underwriting: Predictive scoring based on models leveraging internal and third-party data
- Marketing: CRM-driven campaign management that shares information across distribution, underwriting and service channels
- Billing: Electronic bill presentment and payment
- Analytics: Self-Service analytics based on verified and accessible enterprise data
- Analytics: Use of Big Data tools to mine enterprise data effectively (Hadoop, NoSQL, etc.)
- Claims: Mobile FNOL with video/GPS data capture and pre-fill
“If you want something new, you have to stop doing something old”
The capabilities listed in our Benchmarking the “New Normal” 50 Advanced Capabilities for P&C Insurers are widely available to insurers and are deployed more or less widely by them today. These advanced capabilities are being driven by a combination of five elements: analytics, data, digital channels, modern applications and innovate business practices. Successful organizations in the future will re-imagine and re-conceptualize their product, service and operation strategies in light of technological changes.
- Insurer Digital Capabilities and Strategies
- Preparing for Digital Transformation (CIO Checklist)
- “Hot Topics” for Insurers: Social, Mobile, Analytics, Big Data, Cloud, and Digital
- Big Data Technologies for Insurers (Executive Brief)
- Big Data Lessons for Insurers from Other Industries (Executive Brief)
- US Insurer IT Budgets and Projects 2015