We recently published the Novarica New Normal 100, for P/C and L/A, which covers 100 digital, data, and core capabilities for insurers across eight functional areas: product development, marketing, distribution, underwriting, customer engagement, billing, claims, and finance and operations.
Digital in distribution is mostly focused on Web and mobile capabilities. An example of this is provided by our recent case study of CapSpecialty’s broker portal (from our Insurance Technology Case Studies Compendium). CapSpecialty built a cloud-based platform that leverages third-party data to support straight-through processing for small to medium accounts. Developed in one year, the system supports a two-minute rate/quote/bind process and has enabled 200% growth in submission volume.
Data and analytics capabilities in this area focus on the use of external data, predictive offer models, and internal reporting and analytics. For example, Principal created a tool to identify the likelihood of winning pension risk transfer RFPs within desired profit margins using historical quoting and win/loss data. Completed in under a year, the tool has improved productivity. The company anticipates increased close ratios on the most attractive cases.
Life insurers report higher levels of digital capabilities than last year. The use of prefill-data is also increasingly common and has grown significantly from last year. Large life insurers continue to have more mature core capabilities in distribution: More than half can offer immediate commissions in some areas, while less than a quarter of smaller life insurers can do the same.
Among P/C carriers, mobile capabilities, fully digital transactional capabilities, and APIs have all become more common since last year for large and midsize insurers, though maturity levels still vary widely.
For more on this year’s New Normal for Distribution, see Novarica New Normal 100: Digital, Data, and Core Capabilities for Property/Casualty Insurers and Novarica New Normal 100: Digital, Data, and Core Capabilities for Life/Annuity Insurers. For more case studies, see our Insurance Technology Case Studies Compendium 2019.
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