Technology has changed the way insurers interact with customers, agents and regulators, according to a new report “Emerging Insurance Technologies: Life, Annuities, and Pensions Industry Edition 2012,” by Celent, an international financial research and consulting firm.
The report looked at emerging technologies, such as business process management and mobile and social media to see how widely they were being adopted in the insurance industry. What it found is that business process management is widely used, but mobile and social media are still in their infancy.
It examined the newest technologies in different categories, including growth and retention, risk and compliance, liability management and efficiency and cost control.
For growth and retention, the key drivers for adoption and innovation include: identification of new market opportunities and rapid execution of the right propositions to exploit them; identification of ways to increase the value of their current customers and improve loyalty over the long-term; and identification of new ways to make it easier for customers to do business with the insurer, wherever they are located.
For risk and compliance, the key drivers for adoption and innovation include identification of new market opportunities and rapid execution of the right propositions to exploit them, such as advanced data security, master data management, hedging technology, cloud for business continuity, monitoring social media for reputational risk and big data.
For liability management, the key drivers for adoption were identification and application of claims data that improved actuarial tables and underwriting rules, identification and protection from fraud, and technology to support the identification of high risk groups. The technologies that were examined included predictive modeling in claims, predictive modeling in underwriting, social data in claims, social data in underwriting and advanced fraud analysis.
For efficiency and cost control, the report found that the key drivers for adoption were efficient interaction between call center agents with customers, intermediaries and other staff, process optimization and automation to reduce internal staff costs, and new technology delivery models to reduce the cost of deployment and maintenance. Virtualization, contact and customer management, business rules management systems, business process management, unified communications, straight-through processing and digitization of sales and new business processes, cloud for noncore systems, HTML 5, sentiment analysis, social and collaborative platforms, enterprise case management and cloud for core systems were the main technologies examined.
Two key factors to consider are choosing which technologies are aligned with your company’s business strategy and the organization’s willingness to adopt the technology.