Excellence Implemented: An Analysis of Four Years of Model Insurer Submissions

by Karen Monks,  Michael Fitzgerald, August 24, 2015
Industry Trends
Global

Abstract

A detailed analysis of insurers’ submissions from 2012 through 2015 reveals that digital/omnichannel and core system transformation projects dominated IT agendas. Additionally, an overwhelming majority of projects were improvements to current processes.

Since Celent’s Model Insurer program started nine years ago, Celent has identified Model Insurers by looking at best practices in the use of technology across various areas of the industry — whether in components of the product and policyholder lifecycle or in theme areas such as digital, innovation, or legacy transformation. These areas were illustrated by case studies of specific initiatives and capabilities, selected from the many submissions received and presented in our annual Model Insurer reports.

This report looks at the past four years of Model Insurer submissions as a representation of how technology is changing the insurance industry. The analysis in this report is based on the nearly 370 submissions to the Model Insurer and Model Insurer Asia award programs from 2012 to 2015.

Celent recommends that readers use the findings in this report to benchmark their company against the industry in terms of innovation, digital, data analysis, and legacy transformation.

“Over one-third of projects were for efficiency and expense reduction goals,” says Karen Monks, an analyst with Celent’s Insurance practice and coauthor of the report. “These projects were driven primarily by the substantial activity in core system replacement. This somewhat surprised us, since we thought a lot of this activity was already finished.”

“Projects seeking to improve current processes dominate,” adds Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and coauthor of the report.  “Going forward, we expect innovative and disruptive initiatives to increase as a percentage of the overall effort.”

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

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

Model Insurer Themes

2

 

Client Disclosure

3

 

About this Report

3

 

About the Submissions

3

Model Insurer Submissions

5

 

Types of Submissions

5

 

Themes in Model Insurer Submissions

6

Digital and Omnichannel Technologies

8

Legacy and Ecosystem Transformation

11

Noncore System Implementation / IT Management Best Practices

14

Data Mastery and Analytics

17

Innovation

20

Final Thoughts

23

Appendix: Innovation Portfolio Model

24

Leveraging Celent’s Expertise

27

 

Support for Financial Institutions

27

 

Support for Vendors

27

Related Celent Research

28

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