Technology & the Evolution of Insurance Distribution

Carriers can lower IT costs and improve distribution channel service levels by accelerating XML-related strategies.

Carriers have made enormous investments over the past few years in technology for distribution channels. But by accelerating the implementation of new tools that rely on the emerging ACORD XML standards, most carriers could deliver even better service at lower costs, according to Celent's latest report, Technology & the Evolution of Insurance Distribution.

"The challenge for carriers has been supporting a variety of channels, and letting the channels decide how they want to receive service," says analyst Craig Weber, author of the report. "Now, with XML, carriers have a way to deliver data to third-party systems for their independent agents. They will also benefit from reduced costs if they use the same approach when moving data into their agent extranets for captive agents."

The report summarizes distribution trends and discusses the perspectives of the carriers and distribution channels on the new technology. It also defines a technology model that will help carriers maximize the value of their investment in XML by creating interactions between core systems and distribution systems such as agent extranets and agency management systems.