A new report by the research and advisory firm, Novarica, shows that commercial insurance carriers are modernizing policy administration systems and agent portals to support complexities of business. Novarica also says use of drones, internet of things (IoT), and mobile technology is increasing among commercial insurers.
“Commercial insurance is a business characterized by complex coverages, heterogeneous exposures and risks, and individually negotiated and priced contracts,” Martina Conlon, senior vice president of Research and Consulting at Novarica and co-author of the report, said in the company’s announcement. “It is important for commercial lines carriers to have the appropriate systems, particularly policy administration systems and agent portals, to not only support these complexities, but to also enable the primary objective of growth.”
Novarica’s recently released report, Business and Technology Trends: Commercial Lines, provides an overview of commercial lines carriers’ business and technology issues, data about the marketplace, and numerous examples of recent technology investments by insurers.
Key findings of Novarica’s Commercial Lines report include:
- Drones, IoT, robots, and autonomous vehicles are transforming the industry. These technologies are reducing the need for on-site adjusters and investigators while greatly improving underwriting and pricing, as well as lowering claims frequency.
- Agent portals remain key to customer acquisition and retention, and direct sales capabilities will be increasingly important for more transactional products and program business. Agents and carriers should be spending their time solving client problems, not taking orders or pushing products.
- Mobile devices continue to make inroads in commercial lines.Besides loss control, other functions include field underwriters, premium auditors, and claims adjusters.