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Novarica Offers an Outline of Commercial Lines Carriers’ Business and Technology Problems

By CIOReview | Friday, July 31, 2020
Martina Conlon, EVP

Martina Conlon, EVP

Commercial Lines, research, and advisory firm Novarica offers an outline of commercial lines carriers’ business and technology problems.

FREMONT, CA: Commercial lines insurers are determined on preserving underwriting discipline as they increase the book of business. More insurers have started utilizing data, AI, predictive analytics, and business rules so that they can implement underwriting proficiency consistently and make better underwriting/pricing choices. In the latest report, Business and Technology Trends: Commercial Lines, research and advisory firm Novarica offers an outline of commercial lines carriers’ business and technology problems, data about the marketplace, and almost 20 examples of current technology investments by the commercial lines carriers.

Novarica has assisted more than 100 insurers so that they can make a better choice about technology projects and strategy. Their advisory services offer enterprise phone and email consultations on any topic for a fixed annual fee.

Martina Conlon, Executive Vice President of Research and Consulting and co-author of Novarica’s new report, said, “the impact of COVID-19 varies by commercial market.” “Many commercial insurers are fast-tracking digital initiatives to respond to immediate customer and agent needs and generally improve internal efficiencies.”

Among the significant findings of the reports are:

Commercial lines insurers are still now investing heavily in distribution across digital, data, and core. Sustenance for the agents is still an essential part to customer acquisition and retention. Due to this, the direct sales capabilities will become more significant for small business products and program organizations.

Insurers are using new data sources, particularly in underwriting and claims. Insurers are gaining data from drones, IoT, and telematics for the automotive and commercial property lines along with the data gathered from the peripheral third-party data providers for every line of business.

Commercial lines insurers are gradually accepting AI and analytics. Insurers are making use of them in claims, customer service, and underwriting to enhance the privileged outcomes, augment customer satisfaction, and improve risk selection and pricing.