Emerging Insurance Technologies: Life, Annuities, and Pensions Industry Edition 2012

Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

New technologies have provided great benefits over the years to insurers, enabling IT to provide expanded functionality, greater efficiencies, and increased performance. In some cases, technology changed the way insurers interact with customers, agents, and regulators.

This report, the inaugural version of Emerging Insurance Technologies: Life, Annuities, and Pensions Industry Edition 2012, bridges the gap between business and technology. It examines the technologies and system features that are changing the face of the insurance industry and links them to their predominant business benefits. The report also measures how ready certain technology is for the insurance industry, and vice versa.

This snapshot demonstrates that, while technologies such as virtualization and contact and customer management (CCM) have been broadly adopted by insurers across most geographies, there is still a raft of mature technologies, such as business process management, portals, and specialist hedging technologies that have yet to make an impact. Some of these less well-adopted but mature technologies have the potential to deliver significant value in terms of operational efficiencies, capital efficiencies, and improved agility.

There is also a set of technologies waiting to be proved within the industry, such as social media in underwriting and claims decisions and cloud-based core insurance systems. Despite showing some promise, many of these technologies also come with some technology risks and the potential for vendor hype. The key decisions for insurers are when and how much to invest, and with whom.

“The ability to determine which emerging technologies have the potential to add value is a significant step in insurers’ investment planning,” says Karen Monks, Analyst with Celent’s Insurance group and coauthor of the report. “This report aims to provide insight into which technologies are gaining traction and the business levers they are most likely to address.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

4

Growth and Retention

6

Risk and Compliance

11

Liability Management

16

Efficiency and Cost Control

20

Conclusion

29

Leveraging Celent’s Expertise

30

 

Support for Financial Institutions

30

 

Support for Vendors

30

Related Celent Research

31

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