Commercial Lines Insurers Adopting AI and Analytics to Improve Claims Outcomes and Augment Customer Satisfaction
Insurers are differentiating themselves with distribution management improvements, expansion into new geographies, and growing their underwriting appetites: Novarica
Boston, MA (July 28, 2020) – Commercial lines insurers are intent on maintaining underwriting discipline as they grow the book of business. More insurers are using data, AI, predictive analytics, and business rules to apply underwriting expertise consistently and make better underwriting/pricing decisions. In a new report, Business and Technology Trends: Commercial Lines, research and advisory firm Novarica provides an overview of commercial lines carriers’ business and technology issues, data about the marketplace, and almost 20 examples of recent technology investments by commercial lines carriers.
“The impact of COVID-19 varies by commercial market,” said Martina Conlon, Executive Vice President of Research and Consulting and co-author of Novarica’s new report. “Many commercial insurers are fast-tracking digital initiatives to respond to immediate customer and agent needs and generally improve internal efficiencies.”
Among the key findings of the reports are:
- Commercial lines insurers continue to invest most heavily in distribution across digital, data, and core. Support for agents remains key to customer acquisition and retention, and direct sales capabilities will grow more important for small business products and program business.
- Insurers are leveraging new data sources, especially in underwriting and claims. Insurers are obtaining data from drones, IoT, and telematics for automotive and commercial property lines in addition to data from external third-party data providers for all lines of business.
- Commercial lines insurers are increasingly adopting AI and analytics. Insurers are using them in claims, customer service, and underwriting to improve claims outcomes, augment customer satisfaction, and optimize risk selection and pricing.
A preview of the report
Click here for the table of contents or to access the report.
Report Summary
Commercial lines insurers are differentiating themselves with distribution management improvements, expansion into new geographies, and growing their underwriting appetites. Despite COVID-19, commercial lines insurers are raising rates, seeking growth through expanded jurisdictions and new products, and adopting analytics more broadly. Insurers want to drive down the cost of service, refine pricing and underwriting, and pursue growth. COVID-19 poses revenue and loss risk for certain lines of business, but insurers report limited changes to their businesses and technology strategies.
This report provides an overview of commercial lines insurer business and technology issues, data about the marketplace, and almost 20 examples of recent technology investments by commercial lines insurers.
Topics
- Recent market and financial trends
- Active insurer landscape
- Technology issues, priorities, and examples by functional area
- Top technology priorities for 2020 and beyond
Click here for the table of contents or to access 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
Tags: analytics, Artificial Intelligence (AI), commercial lines, Novarica, satisfaction, trends
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