A second newer development involves the level of consideration now being paid to maximizing the value of data. While data mining is not new, carriers are recognizing the critical opportunity in capturing a wide range of insights from the data piles they've collected. Although business intelligence solutions haven't permeated the insurance enterprise, there is talk of making these systems more insurance specific, and if that succeeds, they may well take a top spot on the list of required tools for competitive advantage. Gaining perhaps even more attention are real-time and predictive analytics. The companies best at deriving these insights are bound to become leaders. They'll make better decisions and be able to offer greater intelligence to their customers, which will raise the bar for other carriers.

A third development, just beginning at many companies, focuses on thinking of the IT department as a strategic, innovative asset, rather than a bunch of mechanics who merely keep the wheels turning. Several leading carriers already have figured this out (which is why they're leaders) and transformed their companies and the industry. I would suggest at least part of the reason not everyone is on board has been the emphasis on reducing cost while enhancing efficiency, again addressing the mechanics' side of IT, as well as an emphasis placed on business-IT alignment–a potential downside to an otherwise noble effort. If technology is meant to fulfill business' goals, that can mean little room left for IT innovation, which points to a need to strike a balance so both sides can move the company ahead.

In looking back at the specific areas of advancement in the past year, one broad thought emerges. While we must stay focused on particular initiatives, collectively we now are forming our future (for more from the industry, see “On the Soapbox”), and from all the signs I've seen, it's looking very promising.