2017 Celent Model Insurer of the Year: CSE Insurance Group's Transformation

by Karen Monks,  Luis Chipana, April 12, 2017
Case Studies
Global

Abstract

In 2017, CSE has been awarded Model Insurer of the Year for its aspiration to achieve “the best product in the industry.” This meant they had to overcome legacy thinking and practices to re-think all the features including coverage, pricing, rules, process, and communications To do so, they sought inputs from customers and analyzed the market using two common analyses: 5 C’s and SWOT. From this point on, CSE assembled and adapted its core system.

What can insurers learn from best in class innovation initiatives?

Celent’s approach is to evaluate, at a high level, key best practices in the implementation and use of technology that a “Model Insurer” would use. The nominated insurers that display the most successful use of the key best practices within theme categories like digital, data analytics, innovation, and legacy transformation are named Model Insurers.

While this report does not present an exhaustive list of best practices or expected results, Celent has identified several common best practices such as use of industry standards, optimization of infrastructure, positioning for future reuse, automation, STP, and system integration as being integral to the success of an IT project.

CSE Insurance Group is a great example of an insurer that underwent a massive change and succeeded. They changed their management team, staff, corporate brand, product lines, technology, and culture. Underlying the change was a willingness to take risks.

“CSE admits it didn’t do everything perfectly. They made a few mistakes along the way, but they believe they did everything right to support the launch of their innovative and complete product development effort. Their willingness to question and ultimately revise how and what they do makes them a Model Insurer,” said Karen Monks, Analyst in Celent’s Insurance Practice and coauthor of this report.

On April 4, Celent also presented Model Insurer Awards to winners in the following categories:

2017 Celent Model Insurer: Legacy and Ecosystem Transformation

Legacy Replacement — Republic Indemnity

Legacy Replacement — ERS

Legacy Replacement — Insurance Corporation of British Columbia

 

2017 Celent Model Insurer: Data Mastery and Analytics

Better Risk Assessment — The Savings Bank Life Insurance Company of Massachusetts

Underwriting Improvements — StarStone Specialty Insurance Company

Predicting Climate Risk — Meteo Protect

 

2017 Celent Model Insurer: Digital and Omnichannel

Straight-Through Processing — CUNA Mutual Group (TruStage)

Digital New Business — Lincoln Financial

Portal in the Cloud — New York Life

 

2017 Celent Model Insurer: Innovation & Emerging Technologies 

Peer-to-Peer Insurance Platform — Suramericana de Seguros S.A.- Wesura

Monitoring via IoT Sensors — Church Mutual Insurance Company

Reducing Fraud — Markerstudy Insurance

 

2017 Celent Model Insurer: Operational Excellence 

Agile Transformation — Aflac

Virtual Global IT Organization — Saxon

Data Science Development Program – MassMutual

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Model Insurer Overview

3

 

Model Insurer Themes

3

 

About this Report

6

 

Summary of Model Insurer Award Winning Initiatives

7

Common Best Practices and Results

10

 

IT Best Practices

11

 

Measurable Business Results

14

Model Insurer of the Year: CSE Insurance Group

17

 

Opportunity

18

 

Solution

19

 

Project Planning

20

 

Delivery

23

 

Results

24

Conclusion

27

Leveraging Celent’s Expertise

28

 

Support for Financial Institutions

28

 

Support for Vendors

28

Related Celent Research

29

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