Increasing efficiency and managing risk more effectively are two key ways for insurers to use data and analytics technologies to create business impact. Leveraging data can streamline simple processes and free up skilled resources for more complex tasks, creating lift across the organization.
Shelter Insurance, one of the winners of the 2020 Novarica Research Council Impact Awards, demonstrated all of these benefits in their case study.
Shelter created a cloud-based application for automated risk scoring. The project was completed in 12 months and halved the number of new business and policy change transactions that underwriters reviewed manually without requiring the company to purchase new technology or increase infrastructure costs.
Like many insurers, Shelter wanted to eliminate unnecessary manual reviews to low-risk new business and policy change transactions. Shelter first piloted the cloud-based application in a single line of business. The application needed to scale to multiple lines of business and transaction types and be customizable for different process flows.
Shelter’s case study also indicates how successful insurer IT initiatives can depend as much on change management as on technology. Incorporating feedback to calibrate the application’s data model helped business users feel comfortable and created buy-in, leading to successful implementation.
In its initial deployment, the data model and automated risk scoring cut the number of transactions that required underwriter review in half. These results allowed Shelter’s underwriters to focus on more complex risk assessments, cut back on communication volumes to agents, and reduced sales friction—improving efficiency and customer experience across the distribution chain.
Earlier this month, Novarica announced the winners of the ninth annual Novarica Research Council Impact Awards. These awards recognize insurance technology projects that demonstrate real business impact and are selected by insurer CIO members of Novarica’s research council.
Over the next several weeks, we’ll continue taking an in-depth look at each of the eight winning case studies. Case studies for all winners and 20 other IT projects considered for the Impact Awards appear in this year’s Insurance Technology Case Study Compendium. More than 100 case studies from the last five years are available in Novarica’s research library.
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