Insurers Have Expanded Technology Capabilities Substantially Since 2018: Novarica
Study of digital, data, and core capabilities leverages data from more than 60 insurers: 4th Annual Novarica New Normal 100 Benchmark
Boston, MA (July 23, 2019) – Insurers have broadened and matured their technology capabilities, including analytics and mobile, in the last year. While larger insurers retain a significant advantage, smaller insurers report high levels of planned pilot activities aimed at closing the gap, according to the 4th annual Novarica New Normal 100, published today by research and advisory firm Novarica.
“Insurers across the board are deploying more technology-enabled capabilities than last year,” said Matthew Josefowicz, President/CEO of Novarica and author of the report. “But maturity levels still vary widely between insurers. While smaller insurers are starting to close some gaps, larger insurers are much more active in piloting advanced analytics and AI.”
These findings are based on analysis of data collected from more than 60 insurer CIO members of the Novarica Research Council using the Novarica New Normal 100 Framework, which describes 100 digital, data, and core technology capabilities that represent the “new normal” for insurers.
Novarica New Normal 100 (3N100) Benchmark 2019
Key points and findings for property/casualty insurers include:
- Insurers have broadened and matured their capabilities in the last year, especially in analytics and mobile. RPA and APIs have also increased significantly, especially for large insurers.
- The capabilities gap between large and midsize insurers is shrinking, but remains stark in some areas, especially the use of digital and analytics in claims.
- Larger insurers are actively piloting new analytics and AI capabilities. Midsize insurers have less pilot activity in these areas and continue to experience in areas that are table stakes for large insurers, like mobile FNOL and 360° customer view.
Key points and findings for life/annuity insurers include:
- More insurers are deploying analytics. More life insurers are leveraging pre-fill data and predictive analytics, especially in distribution and underwriting.
- Digital capabilities are growing in new areas like billing and claims. Life insurers are expanding their digital strategies to include a broader range of functions.
- Larger insurers retain a significant advantage in digital and analytical capabilities , but smaller insurers report high levels of planned pilot activities aimed at catching up.
Analysis of the Novarica New Normal 100 benchmark data is available in property/casualty and life/annuity volumes at novarica.com/research/. The benchmarking tool is also available on request to CIO members of the Novarica Research Council. Membership is free, contact [email protected] for more information.
Novarica New Normal 100 (3N100)
100 digital, data, and core capabilities for insurers
The Novarica New Normal 100 (3N100) is a list of 100 technology-enabled business capabilities that represent the “new normal” for insurers. They span product development, marketing, distribution, underwriting, customer engagement, billing, claims, and finance/operations functions across digital, data and analytics, and core technology areas.
Novarica uses the 3N100 Framework for capabilities assessments to benchmark against our annual study of research council members. Our most recent studies are available online:
Novarica’s CIO clients and Council Members use the 3N100 Framework to benchmark their capabilities, make strategic plans, and communicate with the leaders of other business units.
If you have questions about the 3N100 or would like to learn more, please contact us.
Insurer CIOs, if you haven’t participated in the 3N100 Benchmark, please contact Matthew Josefowicz at Novarica for a copy of the Framework in XLS, and to receive a free copy of the report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: Novarica
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