Celent Model Carrier 2007: Case Studies of Effective Technology Usage in Insurance

January 16, 2007

Abstract

New York, NY, USA January 16, 2007

Celent's inaugural "Model Carrier" report recognizes 39 insurer technology initiatives as "Model Carrier Components." Recognized insurers participate in Celent's first Model Carrier Summit in NYC on Wednesday, January 17.

The vision for Celent's Model Carrier research was to try to answer an apparently simple question: "What would it look like for an insurance carrier to do everything right with today's technology?" Of course, the question is not nearly as simple as it appears. The terms "everything" and "right" will mean very different things to different insurance carriers depending on their size, the complexity of their operations and product sets, and their technological starting points.

"Our approach was to offer, at a high level, some key best practices in the use of technology across the product and policyholder life cycle (product definition, distribution, underwriting, policy administration, service, billing, claims, reinsurance) and in IT infrastructure and management that a 'model carrier' would use," said Matthew Josefowicz, manager of Celent's insurance group and lead author of the report, which was co-authored by the entire Celent insurance team. "Of course, there is no such thing as a single Model Carrier--every insurer does some things well, and others not as well when it comes to technology. So we set out to gather as many real world examples of effective usage of technology as possible. These case studies are presented as components of a theoretical model carrier's insurance IT systems and practices."

Although brief (averaging 100 to 250 words), nearly all of the 39 model carrier component case studies include detailed descriptions of business drivers, technology environments, and quantitative success metrics. Selected initiatives included: 

  • AAA Missouri: E-Apps and STP 
  • AIG VALIC: Closed Loop Lead Management 
  • Allstate Financial: Grid Computing for Annuity Valuation 
  • Allstate Financial: Rules-Based Automated Underwriting 
  • American Safety: Comprehensive Reinsurance Management 
  • Arbella Insurance Group: Common Interface Layer for Agent Portal and Agency Management System Support 
  • Aviva Canada: Electronic FNOL 
  • Baltimore Life: Teleunderwriting 
  • Chubb: Data Mastery for Underwriter-Assisted Sales 
  • Chubb: Underwriting Process Transparency via BPM 
  • Columbia Insurance Group: Externalized Underwriting Rules to Power E-Apps 
  • Connecticut Healthcare Workers Compensation Trust: Automated Medical Bill Review 
  • FCCI Insurance Group: Digital Claims Files 
  • Genworth: Document Management Center of Excellence 
  • Great American Financial Resources Inc. (GAFRI): Data Model and Repeatable Integration Methodology 
  • GUARD Insurance: Agent Portal with Electronic Applications 
  • Harvard Pilgrim Health Care: Group E-Billing 
  • Hastings Mutual: Comprehensive Claims Environment 
  • Helvetia Insurance Group (Switzerland): Services-Oriented Architecture to Enable E-Business and Reduce Development Expenses 
  • Indiana Farm Bureau: Wireless Claims Adjusters 
  • Mutual Benefit Group: Online Quoting and Applications Based on Web Services Architecture 
  • Mutual of Omaha: Remote Printing of Proposal Documents 
  • Mutual of Omaha: Rules-Based Underwriting Workflow
  • New York Life: Common Calculation Engine 
  • Ohio Casualty: Ultra-Configurable Core Policy System 
  • Ohio National. e-Apps
  • Ohio National: Electronic Workflow with Familiar Interface 
  • Pekin Insurance: Common Calculation Engine 
  • Penn National: Mobile Loss Control Inspectors
  • Reliance Standard Life: Policy Administration Replacement and Process Improvement
  • Selective: Professionalized Project Management 
  • The Hartford: Data Mastery for Distribution Management 
  • The Hartford: Rigorous IT Governance with Senior Business Executive Oversight 
  • The Principal Financial Group: Print-on-Demand Proposals 
  • Tokio Marine & Nichido (Japan): Comprehensive Agent Portal 
  • Unitrin Kemper Auto and Home: Controlling First Notice of Loss 
  • Unitrin Kemper Auto and Home: Rules-Based Underwriting 
  • West Bend Mutual: Geo-Coding for Reserve Management. 
  • West Bend Mutual: Point-of-Sale Automated Underwriting with Agent Feedback

Celent's report was published in preparation for its inaugural Model Carrier Summit, an exclusive event for insurers that were recognized in the report. Celent plans to make this an annual report and event and will be gathering cases for the 2008 report throughout the year. Insurers may nominate themselves for the 2008 event using an online form.

The report is 52 pages. A table of contents is available online.

Members of Celent's Life/Health and Property/Casualty research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

New York, NY, USA January 16, 2007

 

Executive Summary 3
Introduction 5
Model Carrier Components 2007 7
Product Design and Development 8
Marketing 11
Distribution: Agent Portal 14
Distribution: Other Elements 19
Underwriting 21
Policy Administration 26
Service 29
Billing 31
Claims 33
Reinsurance 38
Infrastructure and Architecture 40
Technology Management 43
Conclusion 46
Appendix: Summary of Model Carrier Components and Metrics 47
Objectivity and Methodology 51

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