Advanced capabilities allow large insurers to ‘widen their lead’

Advanced capabilities are becoming the ‘new normal’ for large property and casualty (P&C) insurers, a new industry report has found.

The report, compiled by Novarica, surveyed more than 60 P&C insurers about their current and planned use of digital channels, analytics, innovative business practices and modern applications.

The research found that as a result of implementing advanced capabilities, the larger insurance companies are ‘widening their lead’ over smaller firms. It also showed, however, that a number of medium-sized insurance companies have also utilising advanced business practices.

According to the research, the areas where most insurers are deploying advanced capabilities are in billing and distribution, underwriting and analytics. Using progressive practices in product and customer experience was also said to be becoming increasingly common within many insurance firms.

With approximately 25% of carriers planning to launch advanced capabilities in 2015, Novarica’s report predicts that products optimised for the buying and selling experience, as well as analytics-driven product design, are in line to see the most significant increases in 2015.

The insurance technology consulting and research company also found that insurers’ use of CRM-driven campaign management, which shares information across underwriting, distribution and service channels, will expand in 2015. More than a fifth (21%) of respondents said they plan to integrate this technology in forthcoming months.