The industry analyst proposed four priority technology areas for insurers which includes business intelligence, along with risk and catastrophe modelling, developing a modernisation capability and exploring core systems refresh options.
Catherine Stagg-Macey, associate research director at Novarica, said: “Whilst the large wads of paper stuffed into leather files will persist, the London Market has undergone a remarkable degree of modernisation in the last decade. The areas of post data risk capture, claims, and account settlement have been transformed. ACORD messaging – specific to London market – is commonplace as are a variety of message gateways aimed at reducing friction costs between counterparties.”
She added: “London Market CIOs have a unique challenge to keep on top of these initiatives and evaluate the benefit to their organisation.
“The top technology initiatives for London Market insurers include broker management/e-placement, business intelligence, pricing engines, and risk and catastrophe modelling. The appetite to continue to expand into new regions drives much of this investment, as does the increasing intervention by regulators.”
Novarica added that lower priority technology initiatives include messaging (both bureau and non-bureau), core policy admin and general ledger.