How P/C Insurers Can Sustain Growth And Improve Performance In 2014

In the wake of a slowly recovering economy inflicted by fierce competition and regulatory challenges, property-casualty insurers are tapping every available opportunity to improve underwriting discipline, drive operating efficiencies and leverage data and enhanced analytics to sustain growth and widen their performance advantage. A 2014 report released by Ernst & Young – U.S. Property-Casualty Insurance Outlook – claims so.

According to Ernst & Young, in 2014, property-casualty insurers must focus on the following key trends in order to protect their margins and improve operating efficiencies: [@PCITplus]

The Time For Transformation Is Now For Property/Casualty Insurers

P&C insurers should focus on gaining competitive advantage through technology transformation and workflow innovation, according to Deloitte

The P&C insurers witnessed momentous changes in 2013: rise on volume, comparatively modest catastrophe losses, and industry’s capital position reaching record levels paving the way to a stabilizing economy armed with strong capital positions. Deloitte, in their report entitled: 2014 Property and Casualty Insurance Industry Outlook – Transforming for growth – Innovation leading the way, corroborate the same.

However, the consulting firm also gave a heads up to P&C insurers substantiating the need for innovation in order to continue to adapt to the evolving demands of the consumer, even as the market seems to recover. [@PCITplus]

Big Data Technology Gaining Popularity Among Commercial Insurers

Big data, a collective term for sophisticated data storage and processing frameworks, seems to be gaining attention among major commercial insurance companies in order to gauge the risks involved in underwriting.

Sam Medina, vice president of one of the largest insurance and healthcare information technology services providers said to have various projects in pipeline related to big data. He also added that other insurers, with which he consults, are also adopting the same trend.

“The progress has been pretty steady,” Mr. Medina said. “There is not a single commercial lines carrier that we deal with that does not have big data on their agenda.” [@PCITplus]

Insurers Prefer Outsourcing Over Cost Reduction, Says Report

Research reveals boost in technology and business outsourcing owing to increased focus on customer experience and risk management by insurers

According to studies conducted by Everest Group, in 2012, information technology outsourcing (ITO) and business processing outsourcing (BPO) in insurance have witnessed growth of 18 and 15 percent respectively. Cost reduction is no longer the main focus. Companies, while doing outsourcing, are stressing on enhancing company technology.

The reports were prepared after analyzing the current market trends and predict the future of outsourcing relationships. The reports clearly highlight insurers’ need for strategic partners who can help with developing solutions that will boost efficiency and keep up with new technologies. [@PCITplus]

Here’s How Business Processes Can Be Streamlined Using Social Media Tools

According to experts, social media tools designed for the enterprise class can efficiently streamline business operations by improving the quality of data used in making risk management decisions. [twitter.com/PCITplus]

Jon Bidwell, Chief Innovation Officer at Chubb Corp said that their company is using social media tools to share knowledge throughout its organization. Mr. Bidwell commented, “When we look at ultimate business impact, particularly in knowledge-based industries such as ours, we are finding that the ability to extend social-based platforms as private, interactive, on-demand networks is where the next wave of productivity improvements will come from. It allows us to flatten the organization and move information around more effectively.”

Use of social media tools has exceeded the limitations of traditional information sharing channels such as emails and has enabled “cross-pollination” of ideas”.