Five Lessons from Across the Pond for European Insurers

September 16, 2005

Abstract

London, United Kingdom September 16, 2005

The United States insurance market is by far the largest market in the world, with over €900 billion in premiums in 2004. The European Union insurance industry is a close second, with the United Kingdom, Germany, France and Italy being the dominant regional players. There has been a lot of focus on differences between the US and European insurance markets, but in a new report, " ," Celent proposes that there are similarities in the core business processes used by insurers on both sides of the Atlantic.

"While business strategies may focus on different challenges, the processes used are the same. These similarities allow us to identify successful IT strategies," says Catherine Schmitt, senior analyst at Celent and author of the report.

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The report proposes five key areas where European insurers can learn from US insurers, namely compliance, channel distribution, customer profitability, standards, and how to make the most of legacy systems. The report includes case studies of Allstate, the Electric Insurance Company, and the American National Insurance Company.

The report is 27 pages long and contains seven figures and one table. A table of contents is available here.

of Celent's Property/Casualty Insurance and Life/Health Insurance 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 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

 

London, United Kingdom September 16,  2005

Return to report Abstract

Executive Summary 3
Introduction 4
General Principles 6
Turning A Compliance Burden Into A Strength 9
  A Strategic Approach 9
Using Technology For A Competitive Edge In Distribution 12
  Case Study 14
The Role Of Standards 16
  SOA and Web Services 16
  Case Study 17
  Acord XML 17
Understanding The Strategic Value Of Data 17
  Client Profitability 17
  Data Models 19
Challenges Of Core Legacy Systems 20
Advantages Of A Modern Solution 20
  Case Study 21
  Build vs. Buy 22
  Key Steps To Successful Legacy Replacement 22
Concluding Thoughts 27
Objectivity & Methodology 26

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