Given the complex and challenging factors that property/casualty insurance executives face in today's market, it's becoming more difficult-if not impossible-to establish key priorities that remain relevant over time.Findings from a survey of 120 P&C executives by Robert E. Nolan Company Inc. demonstrate the environment may be settling down, enabling executives to set priorities for their organizations. The Simsbury, Conn.-based research and consulting firm notes that seven distinct courses of action emerged from its study:
* Carriers should avoid distractions and instead focus on core processes and performance drivers.
* Not surprisingly, expense management and customer service continue to be issues that rate highly with property/casualty insurers.
* Insurers need to objectively and thoroughly review whether offshore outsourcing for underwriting, claims and contact centers will deliver the benefits that are promised.
* Insurers must renew their commitment to paperless processing, because, "the promise and reality appear to be converging," according to Robert E. Nolan.
* Executives need to check their organization's alignment on major initiatives and programs. The report notes that this issue is particularly important for CEOs and CIOs.
* Publicly traded insurance companies should analyze their technology budgets to determine if they're being too conservative with IT investments. Mutual companies, according to the report, should assess their IT investments to determine if they are ahead of competitors or playing catch-up.
* Small and mid-size property/casualty insurers need to carefully evaluate options and strategies, particularly those companies that compete directly with large insurers that continue to invest in scale and efficiency.
Offshore Processing
We plan to investigate the use of offshore underwriting or policy issuance
(Percentage of P&C carriers surveyed)
Offshore outsourcing remains a low priority for underwriting and policy issuance.
Source: Robert E. Nolan Company Inc., 2005
Offshore Contact Centers
Contact centers will move offshore
(Percentage of P&C carriers surveyed)
Most insurance executives aren't convinced offshore call centers are a viable option.
Source: Robert E. Nolan Company Inc., 2005
Paperless Underwriting
We expect to be paperless in underwriting workflow within the next two years
(Percentage of P&C carriers surveyed)
Despite widespread adoption, almost one-half of the industry isn't committed to paperless underwriting.
Source: Robert E. Nolan Company Inc., 2005
Claims Reporting
Reporting of claims should be direct, not through independent agents
(Percentage of P&C carriers surveyed)
Most carriers believe they should handle claims directly, instead of through independent agents.
Source: Robert E. Nolan Company Inc., 2005
