"There are limits to how quickly you can produce change within an organization," says Settel. "Technology can enable you to move at a quicker pace, but it is our ability to use that appropriately, effectively, and safely that will be the constraint. There may also be regulatory constraints as well. While we are at a time of amazing opportunity and change, we want to make sure we are working in a proven manner and mindful this is all new. We don't want to do things that will create more risk."

In Homesite's early stages as a start-up company, Settel was interested in putting together a staff with strong technical skills, passion, a level of creativity, and problem solving.

"To me that was a key to growing quickly and building a strong organization," he says. "That has to be at the nucleus."

But Settel also contends strong management is needed to build a fully-formed organization where people can be successful.

"If there is just a bunch of hard chargers, it's hard to build an organization," he says. "We have a team structure where people can come in and be successful."

Homesite's plan was to grow quickly, so Settel and his IT staff set out to take three steps to establish the back office—automate, outsource, and simplify.

"We didn't want to be burdened by outgrowing the back office, which becomes very labor-intensive and a strain on middle and senior management," he says. "You want to focus on other things. We started from nothing and built out a back office infrastructure with in-house technologies, integration between packaged software, and working closely with BPO partners based on how they fit within the infrastructure."

Homesite continues to leverage that strategy to achieve a cost advantage within the industry.

"We would not have been able to grow as quickly as we did if we didn't go down that path," says Settel. "It became a pretty exciting project. Early on, when we built out our full web quote-bind-issue capability, we were first in the industry for homeowners insurance."

Being able to start out without a legacy system was a huge advantage for Homesite and the company placed its bets on the Internet becoming a significant part of the insurance business.

"In 2001 we started writing through that system and by 2005-07 as the Internet exploded for personal lines, we were positioned to have the basic capabilities to grow in that channel," says Settel. "All the time we are improving, but the basic logical architecture hasn't changed in the decade-plus since we laid it out."

Settel believes legacy systems have held back many insurance carriers from doing some of the things modern technology has made possible.

"In personal lines, companies are in unison saying they have to have the technology to support the requirements of the consumer in that channel, they have to be multi-channel, they have to have time to market, and they have to have great customer experience imbedded in their systems," he says. "If you want to get all of the advantages of multi-channel distribution and direct to consumer, you have to be willing to make the investments."

Settel also believes the personnel talent in the industry is great, whether it be in marketing, actuarial departments, or analytics.

"That environment has translated into pretty good technology," he says. "I'm pretty bullish on insurance being seen not as a technology laggard compared to other industries, but as an industry hitting its stride and starting to see the need for seamless integration between the user experience and marketing as a competitive advantage. When you look at the auto insurance industry you can see the dividing line between companies that embraced that and companies that have not."

One of the most exciting thing about the future for Settel is creating customer experience that is substantially better than anything the industry has seen in the past.

"Customers are going to judge us not based on who is the best insurance company or who creates the best experience, but if customers are working with Google products, or Apple products, or Amazon products, they are going to look at what companies are creating the best customer experience overall," he says.

Settel believes the power is shifting to the customer, but he also acknowledges the industry is in a position to create fantastic customer experiences, whether it is in sales, how customers pay their bill or how a claim is settled.

"As that power shifts to the consumer and their ability to select the companies they want to work with, I think [insurers] will benefit," he says. "As you take the intermediary out and work directly with the consumer, you have to imbed into the technology, not just a fantastic customer experience, but the pricing sophistication and granularity in your pricing plan and the controls in place to put that out directly to the consumer and expect to get the result that you want."

Settel is particularly mindful of the importance of enterprise architecture to support business agility, and the need to view mobile as a new channel—not a replacement to an existing channel and not as a copy-and-paste opportunity to simply re-use technology and business processes with some new requirements. 

"In our view, the copy and paste approach is often tempting but not a path to success," he says. "It was not a path to success as companies moved (and still move) to online sales and service. The challenges related to ensuring data accuracy, maximizing pricing sophistication, optimizing expense advantage while meeting extremely complicated customer expectations as so much power shifts to the consumer are magnified with mobile.  We're excited by the opportunity to be leaders in creating mobile solutions, but we also fully recognize the need for significantly new investments not only within IT but also broadly within the organization."