Commercial insurance is a complicated business, essential to businesses, but often branded by complex coverages, assorted exposures and risk and independently negotiated and priced agreements. While prices stabilize and new insurers break into the commercial lines industry, it will be vital for companies to focus their efforts on technology in order to conquer new clients, retain existing clients, and successfully serve them all.
Commercial lines insurers are now seeking to leverage data from a broader network of sources with the help of technology investments. Novarica, a research and advisory firm focused on insurance technology strategy, has recently published a report that shows how predictive analytics, third-party data and multidimensional data are being leveraged by carriers to enhance claims handling and underwriting discipline. Martina Conlon, senior vice president of Research and Consulting and lead author of the report says, “Drones, loT (Internet of Things), third party data providers and telematics are changing the landscape of underwriting in commercial lines.” She goes on, “Insurers have the opportunity to use the data from these sources to improve risk assessment and pricing and boost underwriting results.” Chuck Ruzicka, vice president of Research and Consulting and co-author of the report, builds upon Conlon’s remarks, saying, “The right capabilities are necessary in order to truly take advantage of these emerging technologies and the data available from them.” Ruzicka adds, “To this end, commercial lines carriers are investing in core systems, advanced analytics, and self-service portals.” Continue reading