Trends in Life Insurance New Business and Underwriting Systems Usage
New business and underwriting systems provide life insurers with opportunities for cost containment and organic growth.
A joint survey by Insurance Networking News (INN) and Celent assesses the level of interest for new business and automated underwriting systems in life insurance companies. In a new report, Trends in Life Insurance New Business and Underwriting Systems Usage, Celent reports on how the implementation of new business and underwriting systems can assist with organic growth, a key objective of life insurers coming out the Great Recession. The survey reveals interesting facts about how life insurers use new business and automated underwriting solutions.
“Most insurers who implemented a new business and underwriting system over three years ago did so with the objective of containing costs,” says Mike Fitzgerald, coauthor of the report and a Senior Analyst in Celent’s Insurance practice. “Most of the insurers with existing systems implemented them during a buoyant market, when growth rates were consistently high. Thus, concerns were on costs rather than revenue generation.” Celent found that insurers were very satisfied with these systems and report that they generally meet their original objectives.
Celent also found that companies with plans to invest in new business and underwriting systems in the next two years cite cost containment and developing new business as their key business objectives of the systems. “Insurers who are looking to implement a new business system today realize that the system will provide them with a tool that can help achieve organic growth in new markets like the growing middle market,” says Karen Monks, coauthor of the report and a Celent Insurance Analyst.