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.”
Something else to look at is the Business and Technology Trends report. The report provides a market summary with more than 50 examples of new technology investments made by several commercial lines carriers. There were three principle findings from the report. The first point is that new technologies such as drones, loT, robots, and autonomous vehicles are predicted to overhaul the industry. All of these machines will decrease the necessity for on-site personnel, such as adjusters and investigators. They may also aid in improving underwriting, pricing and decreasing the occurrence of claims. The second finding is that agent portals are essential to gaining and retaining customers, and direct sales abilities are projected to be more essential in regards to transactional products and program business. Rather than pushing for new products, agents and carriers should focus more time and effort on solving the problems of their existing clients. The third notable discovery is the appearance of mobile devices infiltrating commercial lines. According to the report, commercial carriers are focusing on core systems replacement, agent portal functionality, and business intelligence. Claims technology replacement and upgrades are very popular among insurers because they can allow for better service but also cut costs. Insurers will need to adapt to this new market if they want to remain a threat among the insurance world.
“Commercial Lines Insurers Investing in Tech for Claims, Underwriting Data.” Claims Journal News. N.p., 20 July 2016. Web. 20 July 2016.
“Commercial Lines Insurance Carriers Investing in Technology to Compete.” NetRate Systems. N.p., 23 Sept. 2013. Web. 20 July 2016.
“Drones, Internet of Things (IoT), Robots and Autonomous Vehicles Are Poised to Transform Commercial Lines, Says Novarica.” Business and Technology Trends: Commercial Lines. N.p., 16 July 2015. Web. 20 July 2016.