A new research note by TowerGroup analyzes technologies that will provide the most value to insurance carriers in the coming 24 months. Intended as a guide for insurance carriers grappling with increasing financial pressures, "Transformational Technology and Organizational Change: Insurance Carriers' Chicken-or-Egg Question," includes a breakdown of the five technologies TowerGroup regards as the most sustainable for insurance carriers' business operations in 2009 and into 2010. TowerGroup also emphasizes various factors affecting carriers and stresses the importance of dealing with organizational change prior to implementation.

"We strongly encourage insurance carriers to implement new technology vital to ensure their ongoing business health," said Karen Pauli, a research director in the insurance practice at TowerGroup, and author of the report. "However, identifying and addressing organizational change is imperative — especially during an economic downturn — and this should be the number one goal for these organizations, before adopting any new technologies."

According to TowerGroup, carriers should weigh the potential benefits of implementing the following five technologies as part of an overall strategic development plan moving forward:

• Electronic signature, as it closes the last remaining open link in an otherwise fully electronic contracting and claim process.
• Business process outsourcing as a staple for leading carriers seeking to meet varied business goals in a cost-effective fashion.
• Predictive analytics to materially improve virtually every operational area.
• Business process management (BPM) tools to aid operational efficiencies, which is essential in helping carriers to achieve financial stability.
• Knowledge management technology is needed for two compelling reasons: As baby boomers retire, their knowledge for complex decisions needs to be harvested, and their replacements from the Millennial generation rely on technology tools for informed decision making and innovation.

For more information about TowerGroup and its latest reports, visit the company's website.