Model Insurer 2013: Case Studies of Effective Technology Use in Insurance

by Karen Monks, February 27, 2013
Case Studies
Global

Abstract

Seventeen Model Insurer Components are described in this seventh annual edition, and Celent’s Model Insurer of the Year is named.

In a new report, Celent Model Insurer 2013: Case Studies of Effective Technology Use in Insurance, Celent recognizes 17 insurance technology initiatives as “Model Insurer Components.” The report also names XL Group the Model Insurer of the Year. These best practices in the use of technology span key areas of the product and policyholder lifecycle, including product development, distribution, underwriting, policy administration, IT management, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

“Insurers continue to stress innovation in their initiatives. However, IT projects that reduce long-term costs, improve back office operations, and provide better customer service are also prevalent in this year’s award winning projects,” says Karen Monks, Analyst with Celent’s Insurance Group and author of the report. “Insurers continue to concentrate on improving operations but are also stepping up their use of emerging technologies.” 

Model Insurer Components 2013

  • AAA Northern California, Nevada & Utah Insurance Exchange: Transitioning to a new policy administration system with effective change management.
  • Allstate Financial: Transforming billing through automation and reengineered end-to-end processes.
  • Allstate Financial: Tapping into annuity legacy data to minimize risk.
  • AXA UK: Combining internal and external data to pinpoint risks, manage accumulations, and even respond to a catastrophe.
  • CNA: Setting a new standard for functionality and flexibility in billing with a custom-built agent portal.
  • CNA: Using data analytics to combat fraud.
  • Friends First Life Assurance Company: Automating claims and payment processing for increased efficiency and quality.
  • Genworth Financial: Improving the claims process with real time, web-based filing and management.
  • Great American Insurance Group: Creating a low cost, low impact collaborative innovation group within IT.
  • Hiscox USA:  Coopetition: Changing a competitor to a partner to expand distribution.
  • Industrial Alliance Auto and Home Insurance: Optimizing telematics technologies to reduce risks for young drivers.
  • ING U.S.: Scaling role management and access certification to enterprise platforms, directories, and applications.
  • Jewelers Mutual Insurance Company: Redefining how the company services its customers through a complete business and system transformation.
  • L&T General Insurance Company Limited: Moving ahead in the Indian market using a web-based PAS for underwriting.
  • MetLife India Insurance Company Ltd: Creating a new benchmark for bancassurance distribution in less than a year.
  • Mutual Benefit Group: Reusing technology to reinforce regional carrier’s competitive edge.
  • ORANTA Insurance Company: Centralizing back office processes to allow front offices to concentrate on customers.
  • XL Group plc – Model Insurer of the Year:  Creating a single web-based platform for managing claims globally.

Nominations were accepted throughout 2012, 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.

This 52-page report contains 17 Model Insurer Component mini case studies, one Model Insurer of the Year case study, two tables, and three figures. 

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)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

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

1

Introduction

3

 

What Is a Model Insurer?

3

 

What Is Model Insurer Component?

3

 

Nomination and Selection Process

3

 

Client Disclosure

4

 

About this Report

4

Common Best Practices and Results

6

 

IT Best Practices

6

 

Measurable Business Results

9

Model Insurer Components 2013

13

Billing

14

Claims

18

Distribution/Life Illustrations/New Business

23

Infrastructure and Architecture

26

IT Management

28

Policy Administration

32

Product/Design Definition

35

Risk Management

39

Underwriting

42

Model Insurer of the Year 2012

44

 

XL GROUP

44

Conclusion

52

Leveraging Celent’s Expertise

53

Related Celent Research

54

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