For the latest in our series of Business and Technology Trend reports, I looked at the top issues for Commercial Lines and Workers’ Comp, and offered an overview of and data on their respective markets and examples of recent technology investments by insurers.
Both commercial lines and workers’ comp carriers are looking to invest more in agent portals, data analytics, and core systems replacement. Specifically, commercial lines carriers are focusing on expense reduction, growth strategies, and improving underwriting results, as they see pricing continue to firm up. As a result, we are seeing them consider issues including business intelligence (particularly predictive analytics, for those who have sufficient data), policy administration upgrades to improve product development flexibility, claims administration system upgrades, and agent and policyholder portals that extend functionality to both parties.
Workers’ comp carriers, on the other hand, are dealing with competitive and regulatory pressures that are leading to a strong interest in data and efficiency. Like commercial lines carriers, their top initiatives include extending portal functionality to the agents and policyholders, upgrading claims administration systems, and policy administration system upgrades to improve risk selection and pricing, and to reduce operating expenses. They are also interested in business intelligence and predictive analytics tools.