We recently published our Novarica New Normal 100 reports, which cover 100 digital, data, and core capabilities for both property/casualty (P/C) and life/annuities (L/A) insurers. These capabilities range across eight functional areas: product development, marketing, distribution, underwriting, customer engagement, billing, claims, and finance/operations.
Different functional areas require different capabilities. Those for product development include both digitizing internal workflow and incorporating digital principles into product design—these capabilities might be focused on actuarial, modeling, or bringing a new product to the market. Large and midsize insurers alike reported that they are leveraging digital processes in this area, although large insurers are more advanced.
85% of large P/C carriers already have some form of digitally optimized product; just over half of midsize insurers in this space, on the other hand, reported the same. Larger insurers for both P/C and L/A are leading the way with analytics maturity. There has been significant growth in most product development functions since the 2018 New Normal 100 reports.
Mobile-optimized capabilities along with customer behavior modeling and analytics-driven product design were areas of focus for carriers over the past year. This trend was reflected in many of the case studies submitted to Novarica for its 2019 Impact Awards. Gerber Life, for example, was an Impact Awards winner for its direct online sales and underwriting platform, which sought to reduce the overhead for new product introduction. The custom-built system increased speed to market by 75%, in addition to driving 7-10% annual growth for Gerber’s direct business and reducing underwriting time by 72%.
To learn more about the current state of insurance carriers, 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, and Insurance Technology Case Study Compendium 2019.
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