Innovation Group listed as a Sample Vendor in Gartner's 2011 Hype Cycle for P&C Insurance for P&C Insurance BPO, Policy Management Modules, Claims Analytics and Claims Management Solutions
Author: Kimberly Harris-Ferrante, et al | Gartner Inc. “Hype Cycle for P&C Insurance for 2011,” July 26, 2011 | 2011
The property and casualty (P&C) insurance industry continues to face increased pressures to evolve as a result of highly competitive markets, consumerisation, shifting consumer behavior, the growing use of electronic channels (including mobile devices), major catastrophic events (such as recent weather-related events throughout the world) and the increased availability of new technologies. As a result, P&C insurers in all lines of business (LOBs) — personal, commercial and specialty — are having to continuously identify new business models and ways to reduce operational costs, grow profits, retain customers, grow their customer base, and ensure customer retention through improved claims and customer service interactions.
To meet these goals, it is imperative that P&C insurers take a more aggressive transformation approach that includes process changes and new technology adoption. Replacing and modernising aging legacy systems, building new customer touchpoints — especially direct channels (including sales capabilities for personal lines and self-service for both personal and commercial lines products) — improving profitably through improved underwriting, and claims transformation are all major requirements to stay competitive in this market.
Gartner has identified four themes that cross the Hype Cycle. The technologies found on the Hype Cycle are primarily aimed at supporting these four key themes.
- Consumerisation and improved customer experience: Growing consumer power and shifting behavior continue to affect P&C insurers. To
- Claims transformation: Claims processing is one of the most important processes that P&C insurers conduct because of the relationship it plays in promoting customer satisfaction and customer retention
- Operational efficiency and process improvement: Although the economic conditions have improved compared with 2009 and 2010, P&C insurers continue to be pressured to improve operational efficiencies and reduce cost, especially personal line insurers that are struggling with profitability. Identifying ways to reduce transactions and operational costs, as well as improve processes to support growth and reduce processing costs, are still strategies among most P&C CIOs.
- Analytics and applied data: Leveraging data, both internal and blending in more-externally available data, is a growing priority among P&C insurers. Although most companies have been using business intelligence (BI) for years, focusing on business analytics targeted at claims, underwriting, sales or agent performance has become the rave among insurers.