With telematics, let us imagine a very changed industry, not only at an operational level, but also on a deeper basis, potentially with a redefined business model and relationship with its customers. It is not hard to envisage new business models, also built in partnership with related industries, providing the opportunity to realize that cultural shift from “adjusting” to “preventing” risk; with positive impact both for customers and insurers.
Guidewire Insight
In a recent white paper SwissRe offered its perspective on the value of telematics to insurers and customers. It sets out some simple points that, considered together, provide a concrete picture of how the future of insurance could look. In a recent blog, Guidewire's Marco Burattino extracts some of the white paper's key points and shares his thoughts, including that telematics presents a very important opportunity to the insurance industry – to take care of the communities it serves more effectively and improve customer life quality.
Commercial lines CIOs and business executives should consider the following top technology priorities: enhancing business intelligence tools, including predictive analytics, through a data strategy, governance, and good data process; upgrading policy administration systems for significant financial benefits; updating claims management and automating the claims process; and extending functionality of both agent and customer portals.
Guidewire Insight
With all the technology shaping the commercial lines business, having core systems capable of supporting it is more important than ever. A recent blog from Novarica's Martina Conlon identifies some of these technologies and the needed back-office capabilities, including predictive analytics, through a data strategy, governance, and good data process. We at Guidewire agree and continue to invest in, and deliver, core and data solutions to help commercial insurers drive premium growth.
The claims operations in most insurance companies are huge. It is also important to consider that a relatively small improvement in claims can translate into a significant increase in operating margin. Now this is not news to most insurers and over the past few years many have made a lot of enhancements in claims processes but there is still room for improvement and one answer is predictive analytics.
Guidewire Insight
Claims analytics can enhance the bottom line in many ways, including reducing settlement lags and claims payout, automatically assigning adjusters according to priority and skill set, and reducing leakage in terms of both expense and indemnity. One current customer experiencing this is commercial lines insurer Atlas Financial Holdings. In this blog, Stuart Rose, market strategy director for Guidewire Predictive Analytics, identifies some of the benefits of predictive analytics in claims and how Atlas realized them.