Model Insurer 2012: Case Studies of Effective Technology Use in Insurance

by Karen Monks, January 26, 2012
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Twenty-three Model Insurer Components are described in this sixth annual edition, and Celent’s Model Insurer of the Year is named.

In a new report, Celent Model Insurer 2012: Case Studies of Effective Technology Use in Insurance, Celent recognizes 23 insurance technology initiatives as “Model Insurer Components.” The report also names Nationwide Insurance the Model Insurer of the Year. These best practices in the use of technology span key areas of the product and policyholder life cycle, including product definition, distribution, underwriting, policy administration, service, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

“Innovation is a common theme for many of the projects profiled in this year’s report.  The Model Insurer Components highlight several innovative uses of technology in insurance,” says Karen Monks, analyst with Celent’s Insurance group and author of the report. “Insurers have stepped up their use of emerging technologies and have had successes in doing so.”

Model Insurer Components 2012

  • AEGON Nederland N.V.: Preparing for Solvency II by automating input to internal model calculations.
  • AIG - Chartis: Using business analytics software to automate strategic risk analysis.
  • American Safety Insurance: Integrating all underwriting units under a common system.
  • Canal Insurance Company: Leveraging Technology to open up new markets.
  • CNA: Using a real time quoting portal that adapts to any agency's workflow.
  • The Co-operative Insurance: Expanding into a strategically important distribution channel.
  • Courtesy Insurance Company: Transforming claims through new systems and re engineered processes.
  • DirectAsia.com: Changing the way automobile insurance is sold in Singapore.
  • Erie Insurance: Streamlining the marketing, selling and processing of life insurance.
  • Great American Insurance Company: Delivering mobile applications to a niche market.
  • The Hartford: Changing the business model of how life insurance is sold and bought
  • HDFC Standard Life Insurance: Offering enterprisewide learning via the Internet.
  • L&T General Insurance Company Limited: Realizing organization wide results in short timeframe.
  • Mitsui Sumitomo Insurance Co., Ltd.: Coping with a nationwide disaster in the cloud.
  • Nationwide Insurance: Model Insurer of the Year.
  • Nationwide Insurance: Proactively monitoring online applications.
  • Philadelphia Insurance: Coordinating the replacement and integration of multiple vendors systems to achieve enterprise operational efficiencies.
  • Prudential Insurance: Using BPM to create a single intuitive view of the customer.
  • PURE (Privilege Underwriters Reciprocal Exchange): Using configured work flow processes to meet customers' unique needs.
  • QBE: Leveraging a geographic risk assessment tool to manage portfolio exposures
  • Tokio Marine & Nichido Fire Insurance Co., Ltd.: Offering “One-Time Insurance” products that can be bought any time and anywhere.
  • Torus Insurance: Delivering a modern portal to brokers.
  • Universal Insurance: The first digitalization of a claims process in the Caribbean.
  • Zurich: Using telematics to improve fleet operations and risk.

Nominations were accepted throughout 2011, and the Celent insurance team selected the winning initiatives based on the business benefits provided. Each Model Insurer Component is described in a brief write-up within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics.

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

5

 

What Is a “Model Insurer?”

5

 

What Is a “Model Insurer Component?”

5

 

Nomination and Selection Process

5

 

Client Disclosure

6

 

About this Report

6

Common Best Practices and Results

9

 

IT Best Practices

9

 

Measurable Business Results

14

Model Insurer Components 2012

19

Agent Portal

21

Claims

25

Distribution

29

Infrastructure and Architecture

33

IT Management

37

Policy Administration

41

Product Design/Definition

46

Service

52

Underwriting

58

Other: Enterprise Systems

61

Other: Risk Management

64

Model Insurer of the Year 2012

67

Conclusion

77

Leveraging Celent’s Expertise

78

 

Support for Financial Institutions

78

 

Support for Vendors

78

Related Celent Research

79

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