To attract, retain and profitably serve consumers, personal lines insurers are increasing their investment in portals, business intelligence and core systems upgrades or replacements, according to “Business and Technology Trends: Personal Lines,” a report from Novarica. Mobile apps and websites also are increasingly viewed as “table stakes,” Novarica said.
Agent and customer portals offer crucial elements of customer service, and business intelligence and analytics are viewed as important competitive capabilities. Core systems investments continue to be critical in improving speed to market and product flexibility, Novarica said.
For agent portals, priorities include:
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For consumer portals, priorities include:
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For distribution management, priorities include:
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For business intelligence, priorities include:
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For core systems replacement and enhancement, priorities include:
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Billing, CRM, distribution management and specialized components were found to be lower priorities; those projects were found to be primarily enhancements rather than transformational in nature.
Novarica said personal lines are characterized by high-transaction volumes and increasing levels of direct consumer and policyholder interactions; intense price competition; high levels of advertising spending, particularly on the part of direct response companies; and slow growth.
The report also includes an overview of business and technology issues, marketplace data and 45 examples of recent technology investments by personal lines insurers.