We recently published the Novarica New Normal 100 digital, data, and core capabilities reports to help insurers benchmark their technology-enabled capabilities against the industry. The reports are based on a study of 50 property/casualty and 18 life/annuity CIOs and look at maturity and deployment rates of each capability across eight functional areas: product development, marketing, distribution, underwriting, customer engagement, billing, claims, and finance/operations.
In marketing, insurers are taking advantage of advances in data and analytics to improve targeting and even move some of risk selection from underwriting to marketing by focusing on more attractive targets. Approximately two-thirds of large P/C insurers had some advanced analytics usage in marketing, nearly double the rate among midsize insurers. Interesting, this trend is reversed for L/A insurers. For example, our recent case study of Nationwide’s greenfield system launch for small commercial (from our Insurance Technology Case Studies Compendium) highlighted how the systems provided valuable data about the sales and marketing funnel, which now guides rollout to additional states.
Digital marketing capabilities focus on the corporate website and the ability to engage with prospects directly online. With the continued focus on digital strategies, insurers have matured in these areas. Both L/A and P/C insurers continue to embrace digital marketing capabilities.
Core marketing applications are less mature in insurance in all areas from customer data management to customer communications management and the use of integrated marketing platforms. Both L/A and P/C insurers have increased adoption of CRM, and large insurers tend to have more mature capabilities. For example, Funeral Directors Life recently integrated a content services system with its lead generation tool to streamline the processing and tracking of marketing campaigns.
For more on the ever-changing insurance landscape, check out the Novarica New Normal 100: Digital, Data, and Core Capabilities for Property/Casualty Insurers and the 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.
Add new comment