Celent Model Insurer 2011: Case Studies of Effective Technology Use in Insurance

by Michael Fitzgerald, February 10, 2011
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America
Insurance > Life/Annuities > IT Spending
Insurance > Life/Annuities > Illustrations
Insurance > Life/Annuities > Distribution/New Business Acquisition
Insurance > Life/Annuities > Underwriting
Insurance > Life/Annuities > Policy Admin
Insurance > Life/Annuities > Rating
Insurance > Life/Annuities > Claims
Insurance > Life/Annuities > Reinsurance
Insurance > Life/Annuities > Billing
Insurance > Life/Annuities > Innovation
Insurance > Life/Annuities > Mobile
Insurance > Life/Annuities > Entrerprise solutions
Insurance > Life/Annuities > Security and Fraud
Insurance > Life/Annuities > Customer Relationship Management
Insurance > Life/Annuities > Sourcing
Insurance > Life/Annuities > Social Media
Insurance > Life/Annuities > Compliance and Regulatory
Insurance > P-C/General Insurance > Misc
Insurance > P-C/General Insurance > Property-Casualty Insurance
Insurance > P-C/General Insurance > Enterprise solutions
Insurance > P-C/General Insurance > Mobile
Insurance > P-C/General Insurance > Innovation
Insurance > P-C/General Insurance > Billing
Insurance > P-C/General Insurance > Reinsurance
Insurance > P-C/General Insurance > Claims
Insurance > P-C/General Insurance > Policy admin
Insurance > P-C/General Insurance > Illustrations
Insurance > P-C/General Insurance > Distribution/New Business Acquisition
Insurance > P-C/General Insurance > Underwriting
Insurance > P-C/General Insurance > Security and Fraud
Insurance > P-C/General Insurance > Customer Relationship Management
Insurance > P-C/General Insurance > Sourcing
Insurance > P-C/General Insurance > Social Media
Insurance > P-C/General Insurance > Compliance and Regulatory
Insurance > P-C/General Insurance > Rating

Abstract

Twenty-five Model Insurer Components are described in this fifth annual edition, and Celent’s Model Insurer of the Year is named.

In a new report, Celent Model Insurer 2011: Case Studies of Effective Technology Use in Insurance, Celent recognizes 25 insurance technology initiatives as “Model Insurer Components.” The report also names Farmers Insurance the Model Insurer of the Year. These best practices in the use of technology span key areas of the product and policyholder lifecycle, including product definition, distribution, underwriting, policy administration, service, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

“One common theme for many of the projects profiled in this year’s report is the emphasis on top-line growth,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance Group and author of the report. “Insurers are looking to technology to enter new markets, or to address new segments within existing ones.”

Model Insurer Components 2011

• Allianz Life Insurance Company of North America: Improving automation servicing the distribution channel.

• Allied Insurance: Delivering real time processing to independent agents.

• Allstate Financial Services: Improving operational efficiency and risk management through modern document management.

• Allstate Financial Technology: Improving efficiency and risk management through IT architectural standards.

• Aon Benfield: Leveraging technology to open new markets.

• CAA South Central Ontario: Managing a content management replacement project effectively.

• Chartis: Streamlining workflow and improving risk control.

• CNA Insurance: Improving IT and business alignment in the product development process.

• Farmers Insurance: Model Insurer of the Year.

• Harleysville Insurance: Using technology to enhance ease of doing business.

• HDFC Standard Life Insurance Company Ltd: Achieving business vision with business process automation.

• Kinsale Insurance Company: Rapid implementation in support of a start up operation.

• Life Insurance Corporation (International) B.S.C.(C): Bringing consistency and control to a multinational operation.

• Lincoln National Life Insurance Company: Combining automation and sourcing to rationalize the service portfolio.

• Mennonite Mutual Insurance Company: Strengthening agent relationships through an agent portal.

• Mercury Insurance Group: Implementing multiple functional areas using an agile methodology.

• MetLife India Insurance Company Ltd: Supporting business expansion with standard process and flexible technology.

• Mountain West Farm Bureau / Western Computer Services Inc.: Using data analytics to improve claims service and operational efficiency.

• Narragansett Bay Insurance Company: Combining SaaS and aligned business models to speed implementation.

• Nationwide Insurance: Increasing agent productivity through sales reporting automation.

• North Light Specialty Insurance Company: Delivering speed to market for a startup operation.

• Pacific Compensation Insurance Company: Using cloud computing to deliver large-enterprise service and reliability for a midsize company price.

• Reliance Life Insurance Company Limited: Insourcing customer relationship management to support rapid growth.

• SPARTA Insurance Company: Coordinating multiple vendors in order to maximize data integration.

• Tata AIG General Insurance Company Ltd: Decreasing claims expenses through application of mobile technology.

• Travelers: Using automated underwriting to increase straight-through processing.

Nominations were accepted throughout 2010, and the Celent insurance team selected the winning initiatives based on the business benefits provided. Each Model Insurer Component is described in a brief write-up within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics.

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 subsidiary 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

3

Introduction

5

 

What Is a "Model Insurer?"

5

 

What Is a "Model Insurer Component?"

5

 

Nomination and Selection Process

5

 

Client Disclosure

6

 

About this Report

6

Common Best Practices and Results

8

 

IT Best Practices

8

 

Measurable Business Results

13

Model Insurer Components 2011

18

Agent Portal

20

Claims

23

Distribution

31

Infrastructure and Architecture

35

IT Management

37

Policy Administration

41

Product Design/Definition

49

Reinsurance

52

Service

54

Suite Core Systems

59

Underwriting

61

Model Insurer of the Year 2011

65

Conclusion

70

Leveraging Celent’s Expertise

71

 

Support for Financial Institutions

71

 

Support for Vendors

71

Related Celent Research

72

Sign in to download reports and access personalized information