Top Ten Trends in P/C Insurance E-Business 2007 and Beyond

September 11, 2007

Abstract

Boston, MA, USA September 11, 2007

Top Ten Trends in P/C E-Business 2007 and Beyond

E-Business continues to focus on supporting agents, but consumer elements are assuming new importance as well.

In 2004, Celent published a report on trends in property/casualty e-business that contained 10 projections for 2007. In this report, Celent revisits those projections based on updated survey data from 44 property/casualty insurer executives and looks forward to 2010.

"In 2004, we rightly predicted the increasing ubiquity and importance of agent e-business," comments Matthew Josefowicz, managing director of Celent's insurance practice and lead author of the report. "While we were a little over-aggressive in projections for the amount of new business that would be submitted electronically by 2007. Rates have continued to grow and show signs of increasing further. We also may have been conservative in our projections for online quoting and sales in personal lines."

Other findings from the report include:

  • Budget percentages devoted to e-business have remained steady at an average of 5-15%, with a dominant focus on agent e-business and homegrown or custom-built solutions.
  • Policyholder portals continue to be a check-list item for property/casualty insurers, but even there, usage is growing with a third of survey participants reporting more than 50% growth in usage.
  • Prospect-facing e-business and online marketing have gained mind share among insurers over the past three years. Online quoting and the integration of online quoting with agent distribution channels has also grown and demonstrated value.

Looking forward to 2010, Celent sees the following developments on the horizon:

  • More sophisticated interfaces, built on AJAX or the next generation of web technology
  • A steady increase in the percentage of new business submitted online
  • An incremental increase in policyholder portal adoption
  • Ubiquity of online quoting and other rich functionality for prospect-facing websites in personal lines as well as more informational tools for risk managers in commercial lines
  • At least a 50% increase in online marketing spending and a greater increase on search engine optimization

The 32 page report contains 21 figures analyzing survey data. A table of contents is available online. A companion report on life/health will be published later this month.

Members of Celent's Property/Casualty Insurance research service 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 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

Boston, MA, USA September 11, 2007

Top Ten Trends in P/C E-Business 2007 and Beyond

E-Business continues to focus on supporting agents, but consumer elements are assuming new importance as well.

In 2004, Celent published a report on trends in property/casualty e-business that contained 10 projections for 2007. In this report, Celent revisits those projections based on updated survey data from 44 property/casualty insurer executives and looks forward to 2010.

"In 2004, we rightly predicted the increasing ubiquity and importance of agent e-business," comments Matthew Josefowicz, managing director of Celent's insurance practice and lead author of the report. "While we were a little over-aggressive in projections for the amount of new business that would be submitted electronically by 2007. Rates have continued to grow and show signs of increasing further. We also may have been conservative in our projections for online quoting and sales in personal lines."

Other findings from the report include:

  • Budget percentages devoted to e-business have remained steady at an average of 5-15%, with a dominant focus on agent e-business and homegrown or custom-built solutions.
  • Policyholder portals continue to be a check-list item for property/casualty insurers, but even there, usage is growing with a third of survey participants reporting more than 50% growth in usage.
  • Prospect-facing e-business and online marketing have gained mind share among insurers over the past three years. Online quoting and the integration of online quoting with agent distribution channels has also grown and demonstrated value.

Looking forward to 2010, Celent sees the following developments on the horizon:

  • More sophisticated interfaces, built on AJAX or the next generation of web technology
  • A steady increase in the percentage of new business submitted online
  • An incremental increase in policyholder portal adoption
  • Ubiquity of online quoting and other rich functionality for prospect-facing websites in personal lines as well as more informational tools for risk managers in commercial lines
  • At least a 50% increase in online marketing spending and a greater increase on search engine optimization

The 32 page report contains 21 figures analyzing survey data. A table of contents is available online. A companion report on life/health will be published later this month.

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

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