Commercial Lines Insurers Investing in Technology in Hyper-Competitive Market

Commercial insurers are continuing to aggressively invest in technology across functional areas in order to survive in a highly competitive marketplace, according to a report released by Novarica.

The report, Business and Technology Trends: Commercial Lines, includes data on the marketplace and 40 named examples of recent technology investments by commercial lines insurers, in addition to a review of commercial carriers’ current business and technology priorities by operational area.

“While growth is a primary objective, commercial carriers are intent on maintaining underwriting discipline while growing the book. More and more carriers are using predictive analytics and business rules to try to more consistently apply underwriting expertise and make better underwriting/pricing decisions by aligning pricing actions with risk quality,” said Karlyn Carnahan, a principal with Novarica and co-author of the report with Business and Technology Trends series editor Steven Kaye.

The report also includes an overview of the commercial lines marketplace, a summary of the insurer landscape, and a discussion of the top core application issues with examples of projects insurers have recently initiated in each area.

Source: Novarica