Insurance technology investments are focusing on customers and growth

Insurers in the life and annuity market are actively investing in technology which can deliver new customers and drive growth, a new SMA study has found.

The market analyst claimed firms are looking to enable growth by deploying core insurance systems which provide more agility. Billing, claims and policy management systems are all seen as key projects areas according to its 2014 Insurance Ecosystem report.

SMA, which surveyed North American firms, found that one in five insurers are planning new billing or policy management systems, which it claims will have significant implications for operational flexibility, efficiency and customer experiences. It added that 40% were also replacing or enhancing claims systems, which it claimed was partly due to the age of many existing systems.

“It’s no surprise that insurers are building or upgrading tools and systems to improve customer acquisition, especially solutions for producers,” said Mark Breading, partner at SMA.

“The economic environment is improving, demand is picking up, and the market is competitive. Portals, needs analysis tools, illustrations, and electronic submissions are all slated for enhancements or brand new systems. And mobile capabilities are on almost everyone’s list for 2014. Along with this focus comes the reengineering and automation of the new business/underwriting area, with extensive transformation projects underway at many insurers.”