Property Casualty Insurance Research Outlook 2021

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With the year marching on, we’re focusing on issues related to digital transformation. We’ll look at the architectural changes that support digital transformation, new tools and technologies available to support underwriting, services available to help insurers manage this transformation, and we’ll include some primary research of independent agencies. Emerging technologies and data and analytics are also key themes we’ll be focusing on.

Celent is committed to helping our clients assess the technology implications across the financial system, from changes in customer behavior to new strategies and technologies required to respond to this upended world. We’re in touch with financial institutions and their technology partners around the world and are developing a host of new perspectives, updated regularly, to help you make the right strategic technology choices in the medium- and longer term. Our clients have access to our insights through traditional ways – reports, blogs, Analyst Access – and new media, like interactive virtual roundtables and snap polls.

Because Celent is part of a larger organization, Oliver Wyman and Marsh McClennan (MMC), you have access to our collective thought leadership in areas ranging from epidemiology (Oliver Wyman), to economic modelling (Oliver Wyman), to risk/ crisis management (Marsh), and human resource implications (Mercer).

One thing is certain: none of us can go it alone. As you face hard decisions in the areas of technology and partnerships, Celent is here to support you. We can help you vet partners and technologies as you respond to the changing needs of your customers, new market opportunities, and growing cost pressures.


As 2021 winds down, we continue to see technology investments accelerate – especially in those areas focused on legacy transformation, channel enablement and the use of data.

We see technology investments directed towards three major themes:

  • Digital transformation: digitizing channels to grow sales and deliver an engaging customer experience remains a major topic on property casualty insurers’ agenda. New tools and capabilities for digitizing other processes such as claims and underwriting are major areas of emphasis. A wide variety of technologies will be deployed here to accelerate transformation.
  • Data, analytics and artificial intelligence: deploying data and artificial intelligence techniques continues to be one of the most important strategies for property casualty insurers looking to improve the fundamentals of their business, whether underwriting, claims or marketing. Artificial intelligence will increasingly become a core part of a typical project and no longer an exercise in “innovation”. Understanding new techniques, technologies and the governance of those will be critical for insurers moving down this path.
  • Legacy and ecosystem transformation: rationalizing the application architecture using new techniques to advance productivity helps insurers improve efficiency of their information systems and decrease the cost to maintain their system landscape. The use of micro services, the move to the cloud, and changing processes within an organization each create new opportunities for insurers.


Optimizing core insurance processes via smart automation and offering customers digital interaction touch points have been a focus of property casualty insurers. As insurers continue to build out their ecosystem leveraging APIs and emerging technology providers, insurers continue to put the digitization of the customer experience at the center of their efforts.

We continue our exploration of insurers digital transformation initiatives by examining how property casualty insurers are using new technologies to digitize key functions such as underwriting, claims and marketing and the technologies that can be used to accelerate this.


Data, analytics, and artificial intelligence are technologies where property casualty insurers continue to increase their investments. We believe this area will continue to explode over the next several years. The usage of legacy data sources combined with new alternative data sources are transforming underwriting, claims and marketing.

We continue publish deeper insights on how property casualty insurers leverage new analytical technologies to improve their business. We have expanded our coverage of new technology domains in relation to data and Artificial Intelligence such as MLOps. We will look at how specific technologies such as geospatial; speech and image recognition; and natural language understanding, generation and processing; can have a major impact on property casualty insurers’ processes and provide examples through case studies.


We see a continued focus on efficient software delivery, leading to greater cloud adoption levels, greater use of open source, the use of low code/no code platforms and a greater use of agile techniques. The days of multi-year multi-million transformation projects, although still in existence today, are somewhat numbered as insurers look for faster delivery timescales at lower price points. But many property casualty insurers still have to deal with the legacy challenge.

Insurers understand they will have to modernize their legacy systems sooner or later. Key questions to address include:

  • How should insurers evaluate implementation choices? When should they consider a big bang full replacement or a wave by wave approach?
  • How can technologies such as the cloud, APIs, microservices, DevOps help insurers build a cost-efficient and easy-to-maintain ecosystem environment?
  • What solutions offered on the market can help them create their target architecture? Which IT services vendors can help make their legacy modernization program a success?

We continue to provide insights to our subscribers on property casualty insurers’ approaches to modernize the legacy environment, the technologies at play and the vendors that can be relevant partners in this exciting journey.

Contact us for more information about what we have planned in Q4.

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