Personal lines insurers are most likely to benefit from wide uses of automation in underwriting, a new report has found.
“They are more likely to have a homogenous book of business and a standardized product set,” the Celent/Oliver Wyman industry survey found. “Benefits were most likely to be seen by [personal lines] carriers that were investing in automation for those areas associated with operational efficiency followed by underwriting insights.”
Beyond personal lines, the survey points to a number of areas of property/casualty insurance where the technology has worked best, and been used the most so far. What’s more, the document concludes that the technology makes a difference in many ways, but its success can vary depending on how it is put to work, and the line in which its used.
“Automation of underwriting processes carries the promise of improved results, but can come at a significant cost – both the hard costs (purchasing technology, implementing technology and changing processes) and the soft costs,” the report explains.
Among the key findings:
The data comes from members of the Celent Research Panel, a group of senior insurance IT executives. Forty participating carriers responded to an online survey in March 2016, representing personal, commercial, specialty and workers compensation lines. More than 73 percent were midsize carriers, and 20 percent were small carriers. The rest were large carriers.
Source: Celent/Oliver Wyman