The study notes that insurers prefer browser-based solutions as field underwriters work from remote locations.

Priorities:

• “Consistent application of underwriting guidelines and discipline. More and more this is accomplished by utilizing business rules often based on predictive models. Underwriting discipline is a critical management imperative and business rules have demonstrated their value in improving underwriting results.
• “Speed to market for product maintenance and new product development. The ability to react quickly to a competitive situation by rapidly adding forms and/or modifying rates.
• “Increasing the efficiency and consistency of the underwriting process by adding workflows with automatic task generation. Carriers are working on extending straight-through processing beyond BOP into the lower end of middle market.”

Core Claims Systems

Novarica contends that commercial insurers are particularly interested in upgrading claims systems as they deal with policyholders who are more sensitive to claims handling than those in the personal-lines space. “On the high end,” says Novarica, “commercial accounts often have fulltime risk managers who want access to claims information and are quick to judge the quality of the carrier by the quality of the claims experience—and, additionally, have many more comparative opportunities than the typical [personal-lines] consumer.”

The study says insurers are upgrading claims systems to streamline and simplify the claims process, utilizing automated reserving, automated subrogation identification and litigation-management tools. Novarica also says insurers are using business rules and workflow to ensure claims are routed to the appropriate adjusters, since commercial carriers tend to have adjusters that specialize in specific types of claims.

While Novarica says carriers upgrading their claims-admin systems are realizing “substantial benefits,” the study notes that other insurers are “taking a more gradual approach.” Novarica contends, though, that carriers using modern systems “are rapidly gaining competitive advantages” and are achieving better outcome management.

Priorities:

• “Replacing core claims-administration systems to increase operational efficiencies and improve data. Automated reserving, integrated workflow and task management and improved document management are gaining in importance
• “Increasing sophistication in specialized claims such as products liability, contractual liability and claims handling like medical-case management and medical-cost containment.
• “New techniques for identifying potential fraud such as predictive analytics, network analysis or voice-stress recognition software. Carriers also want to add capabilities for unstructured data mining.”

Agent Portals

According to Novarica, commercial insurers are increasingly extending functionality to agents. “Carriers are maximizing the amount of no-touch interactions via provision of information in electronic form,” the study says.

Agent portals are common in commercial lines and usage is continuing to grow, says Novarica, noting that many carriers are already on their second- or third-generation portal release. “A highly important feature for commercial lines is the ability to attach files and import spreadsheets, particularly for accounts with large vehicle or location schedules,” says the study.

Priorities:

• “Online policy-document access (policies, invoices, correspondence, etc.).
• “New-business submission (including BOP quoting).
• “File-attachment support and spreadsheet import.
• “Agency Management System connectivity (upload/download).”

Lower-Priority Initiatives

Following are other technology areas of interest for insurers, but a bit further off the radar than the four areas mentioned previously.

Medium Priority:

Distribution Management

Customer Portal

Document Management & Workflow

Underwriter Workbench

Rating Engine

Billing

Document Creation

Specialized Components

Low Priority:

CRM

Reinsurance Management

Disbursements

General Ledger