Top Ten Trends in P/C Insurance E-Business 2007 and Beyond
Top Ten Trends in P/C E-Business 2007 and Beyond
E-Business continues to focus on supporting agents, but consumer elements are assuming new importance as well.
In 2004, Celent published a report on trends in property/casualty e-business that contained 10 projections for 2007. In this report, Celent revisits those projections based on updated survey data from 44 property/casualty insurer executives and looks forward to 2010.
"In 2004, we rightly predicted the increasing ubiquity and importance of agent e-business," comments Matthew Josefowicz, managing director of Celent's insurance practice and lead author of the report. "While we were a little over-aggressive in projections for the amount of new business that would be submitted electronically by 2007. Rates have continued to grow and show signs of increasing further. We also may have been conservative in our projections for online quoting and sales in personal lines."
Other findings from the report include:
- Budget percentages devoted to e-business have remained steady at an average of 5-15%, with a dominant focus on agent e-business and homegrown or custom-built solutions.
- Policyholder portals continue to be a check-list item for property/casualty insurers, but even there, usage is growing with a third of survey participants reporting more than 50% growth in usage.
- Prospect-facing e-business and online marketing have gained mind share among insurers over the past three years. Online quoting and the integration of online quoting with agent distribution channels has also grown and demonstrated value.
Looking forward to 2010, Celent sees the following developments on the horizon:
- More sophisticated interfaces, built on AJAX or the next generation of web technology
- A steady increase in the percentage of new business submitted online
- An incremental increase in policyholder portal adoption
- Ubiquity of online quoting and other rich functionality for prospect-facing websites in personal lines as well as more informational tools for risk managers in commercial lines
- At least a 50% increase in online marketing spending and a greater increase on search engine optimization
The 32 page report contains 21 figures analyzing survey data. A table of contents is available online. A companion report on life/health will be published later this month.Members of Celent's Property/Casualty Insurance research service can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.