A Day to Celebrate: Celent 2017 Model Insurer Winners

A Day to Celebrate:  Celent 2017 Model Insurer Winners

Last April 4, Boston, a city surrounded by history of patriotism and independence, was witness of Celent Innovation and Insight Day (I&I day), an event in which 16 insurers were recognized as Model Insurers for their technological initiatives that, I’m sure, inspired more 280 professionals of the Financial Service industry by the efforts and ideas on how other insurers could implement them within their organizations.

Andrew Rear, chief executive of Munich Re Digital Partners was the Model Insurer keynote speaker. He discussed the role of Insuretech for large insurers and spoke of how these insurers could acquire agility, the pathway that they needed to choose, and more importantly, the risks they had to bear. He also discussed how Financial Services were redefining the way financial products are sold, delivered, and serviced.

No sensible website asks you for your email address anymore. They should know who you are by other means

~Andrew Rear

 

In the afternoon, our analysts participated in a series of debates focusing on the Internet of Things (IoT); Artificial Intelligence (AI); and Blockchain which was lively discussion. In between, Celent presented its Model Insurers for five categories and the Model Insurer of the Year.

Digital and Omnichannel

  • CUNA Mutual Group

The rapid development and launch of a simplified-issue term life insurance product that enables members to apply entirely online, answering only two health questions supported by a completely automated underwriting platform that delivers an instant decision in minutes.

  • Lincoln Financial Group

Lincoln Financial created a digital process to meet customer expectations of doing business, automate underwriting, reduce cycle time, and minimize human touch.

  • New York Life

The New York Life Portal initiative utilized digital connectivity and a ratings engine cloud-based platform to achieve a faster process and empower various actors across the organization.

To learn more of these Model Insurers, please read our report here.

Legacy and Ecosystem Transformation

  • Republic Indemnity

Republic Indemnity’s previous home-grown, legacy policy administration system was implemented in 1994 as a single state, Workers Compensation policy administration system. As the previous system could not issue multi-state policies and with the concern of technology obsolesce, Republic Indemnity looked for a new solution to replace its home-grown, legacy system.

  • ERS

Under new management, the business had to transform itself rapidly and replace 20-year-old technology. It had a major license renewal date in two years and would have been locked in by the vendor to a prohibitively expensive contract. It set about transforming claims first, and then policy with full data migration and scheme rationalization, all while growing the underlying gross written premium

  • Insurance Corporation of British Columbia

At the beginning of 2013, the Insurance Corporation of British Columbia (ICBC) launched the Insurance Sales and Administration System (ISAS) policy transformation program. This was the last project in ICBC’s overall $400 million Transformation Program, which had already successfully replaced legacy claims systems and implemented a new Enterprise Data Warehouse and an enterprise service-oriented architecture.

To learn more of these Model Insurers, please read our report here.

Innovation and Emerging Technologies

  • Suramericana de Seguros S.A.- Wesura

Wesura (Sura) created a peer-to-peer Insurance platform around social networks. It develops private insurance communities so final users can share risk and underwrite people who wants to belong to the private community, the bigger the community the more benefits one can receive.

  • Church Mutual Insurance Company

Church Mutual Insurance Company has partnered with The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, to provide temperature and water sensors connected to a 24/7 monitoring system. This innovative Internet of Things (IoT) technology solution is designed to alert customers to take action before damages and disruptions to their ministries can occur.

  • Markerstudy Insurance

Markerstudy launched VisionTrack in February 2016 to tackle the challenge insurers are facing with rising fraudulent motor claims and to help improve driver behavior.

To learn more of these Model Insurers, please read our report here.

Operational Excellence

  • Aflac

Aflac was in need of some modernizing and is still likely to undergo more change as the industry continues to capitalize on social, mobile, and wearables. In response, the Aflac IT Division implemented an Agile Transformation to its projects and processes to meet the changing needs of the customers.

  • Saxon

Saxon serves the Cayman island community. With a limited pool to hire from or sell product to, Saxon realized that to remain viable in the insurance market, it needed to employ technology to better serve the needs of its customers and grow the business.

  • MassMutual

MassMutual offers a Data Science Development Program (DSDP) in Amherst, MA that trains promising, recent graduates to become well-rounded data scientists over a period of three years. The program combines rigorous academic coursework and practical data science projects for MassMutual — a unique and valuable combination.

To learn more of these Model Insurers, please read our report here.

Data Analytics

  • The Savings Bank Life Insurance Company of Massachusetts

SBLI implemented an advanced risk assessment solution using predictive modeling and data analytics to help reduce cycle times, decrease dropout rates, and eliminate the need to pull fluids and conduct exams, while pricing policies more competitively, placing applicants into appropriate risk classes, and improving customer experience.

  • StarStone Specialty Insurance Company

The initiative is based on the implementation of analytics tools to measure and reduce risk. The solution uses data from internal and external sources. The data may be structured or unstructured. This tool helps underwriters make better decisions.

  • Meteo Protect

Although a broker, Meteo Protect gives clients a means to evaluate how climate variability contributes to their companies’ results by analyzing the relationship between each business activity and the weather. It couples this with a platform to price and underwrite fully customized index-based weather insurance, for any business anywhere in the world.

To learn more of these Model Insurers, please read our report here.

CSE, Model Insurer of the Year

In 2017, CSE has been awarded Model Insurer of the Year for its aspiration to achieve “the best product in the industry.” This meant they had to overcome legacy thinking and practices to re-think all the features including coverage, pricing, rules, process, and communications To do so, they sought inputs from customers and analyzed the market using two common analyses: 5 Cs and SWOT. From this point on, CSE assembled and adapted its core system.

To learn more of the Model Insurers of the Year, please read our report here.

The quality of the submissions this year is a clear indication the industry is turning a corner and embracing transformation, digital initiatives, innovation and valuing data analytics.  It is inspiring to see the positive results the insurers have achieved and a pleasure to recognize them as Model Insurers for their best practices in insurance technology.

How about your company? As you read this, are you thinking of an initiative in your company that should be recognized? We are always looking for good examples of the use of technology in insurance. Stay tuned for more information regarding 2018 Model Insurer nominations.

The new customer experience – or how so many carriers are getting journey mapping wrong

The new customer experience – or how so many carriers are getting journey mapping wrong

Journey mapping, the process of defining the customer experience, is an activity that has been gaining in popularity over the last two years.  Carriers are using this technique to document the existing customer experience in order to identify areas to improve.  The underlying assumption is that a superior customer experience will drive retention and perhaps improve new business.  Which makes sense.  After all, it’s pretty evident that customers are demanding a different relationship model from their insurers.  They are looking for more transparency and simplicity. They are increasingly self-directed and financially literate.  And they are demanding increasing participation. 

Their expectations are increasingly driven by experience in non-insurance categories.   I can see where my uber car is real-time – why can’t I tell if my claim check has been issued.   I can custom assemble a new pc online with instant knowledge of all the options available and the price associated with them – why can’t I tell what additional insurance options are available and what they cost.   I can get recommendations from Amazon on what I might like and what others like me are purchasing – why can’t I get  good recommendation from a carrier to help me compile the best package of coverages, terms and conditions to suit my profile. 

While efforts have been made to drive effectiveness for insurance processes from an internal perspective, there are still many areas where improvements are possible from a customer perspective. So carriers are working to define an extraordinary experience for customers. They’re defining personas, mapping the new business acquisition process, the billing process, claims, complaint handling, customer inquiries, and all the major processes that occur when customers interact with carriers. 

But that’s the problem. Carriers are focusing on optimizing all those places where the customer and the carrier interact.  Now don’t get me wrong. There is nothing wrong with this.  Carriers should make sure that interactions are optimized.  Focusing on automating decisions, automating correspondence, and using workflow to assure tasks are completed in a timely manner can have a dramatic effect on delivering a consistently good experience.  Omni channel, real time, digitization – all those trendy words – are very relevant here. But it’s not enough.

If you really want to build loyalty, think about the customer experience when they aren’t interacting with you. Let me give you an example. 

Allstate has a target market of motorcycle riders, and has a mobile app for them called GoodRide.  The app is available for both Allstate customers and non Allstate customers.  It helps riders keep track of all repairs and maintenance.  They can plan a ride –  checking weather, locate gas, and even find others to ride with as it is integrated to social media. They can track their ride by adding notes, adding photos and tracking miles ridden. There’s even a gamification element that awards badges.   And by the way, they can report a claim, check proof of insurance and pay their bill.  So this application really looks at what motorcycle riders are looking to do outside of the insurance interaction and embeds the insurance interactions within the full context of the customer’s life and where insurance itself plays a role rather than simply looking at the interactions discreetly.

In the commercial lines world, a similar application could be industry based and provide tailored risk management materials, an “Ask an Expert” corner where customers can check in with risk management consultants,   create a Facebook-like collaboration mechanism for customers to talk to each other,  arrange discounts on products relevant to the industry.  and of course, access their policy online, pay a bill, pull a loss run or handle other interactions. 

Expanding the customer experience beyond the pure insurance interactions makes a carrier more relevant to a customer by engaging in their everyday lives and looking for ways of adding value within context.  And it creates a way to have an ongoing conversation with a customer – building personal loyalty. 

So – is customer journey mapping a good idea?  Of course.  Are carriers thinking big enough? That is a different question.

What I will say, is exactly what I told a carrier earlier today –  The secret to organic growth?  Deliver a customer experience that your competitors can’t match. 

Conversation systems and insurance — one experience

Conversation systems and insurance — one experience

To start with full disclosure, I am a huge fan of the Amazon Echo. We have them throughout the house, and have automated our home so Alexa can control most light switches, ceiling fans and more. We play music through them, ask for the weather, schedule appointments, and more.

All my kids are believers from our 5 year-olds on up. It’s fun to hear one of my five year-olds ask Alexa to play the song YMCA and then burst into full song, including the dance. My one personal recommendation. If you have an Echo and children, turn off voice purchases. I found out the hard way.

So I thought I would check out how Alexa does with insurance. My plan is to try all the skills and leverage them into a report. I may even have to purchase one of Google’s new Google Home devices just to compare them in this use case.

So I spent considerable time this morning trying to get an auto quote. Let’s just say the outcome was that I gave up. I won’t name the insurer, as I am sure that their Alexa skill works well in other areas such as information sharing and likely works for others to get a quote, but it sure did not for me. I do want to give credit to the insurer, as they are out on the bleeding edge doing these quotes.

First it asked me my birth year. It heard 1916. That’s not when I was born, but that’s what it heard. I tried to correct it, using the instructions it had provided, but no dice. I gave up and started over, only to be born in 1916 again. This time it was so stuck I had to unplug the Echo. I was surprised, as Alexa’s voice recognition amazes me.

I’m old, but I’m not 101 years old.

I finally made it through on the third try with very careful enunciation. Made it through my wife’s birth year and the fact we’re both married (apparently being married to each other wasn’t important).

Got to the question on what body style. I tried convertible, since, well, it is a convertible. That wasn’t an option. Since the app had prompted 2 door car as an example, I tried it. Um, no. That’s not supported. That seemed odd, but I tried car. Apparently car is OK.

Made it through miles driven a year.

Go to age of the car. My car is a little older, but no antique. However, apparently 12 years old is fatal, as the app crashed with “Sorry I am having trouble accessing your skill right now”.

OK, odd, but wireless sometimes blips, so no problem. Started over for the fourth time.

Worked my way through all the questions, enunciating very, very carefully and got to age of my car.

Yep. Crashed again.

At that point, I gave up and decided to write a blog instead.

Or I could have played a game of Jeopardy with Alexa.

CES 2017: JUST HOW SMART IS AI GOING TO MAKE CONNECTED CARS AND CONNECTED HOMES?

CES 2017: JUST HOW SMART IS AI GOING TO MAKE CONNECTED CARS AND CONNECTED HOMES?
Walking the exhibit halls and attending sessions at the mammoth Consumer Electronics Show, it was easy to identify the dominant theme: AI-enabled Intelligent Personal Assistants (IPAs).
  • Manufacturers and suppliers of connected cars and homes are betting big on IPAs: overwhelmingly favoring Amazon Alexa.
  • Impressionistically, Google Assistant, Siri, Cortana and others trailed some distance behind.
Natural language commands, queries and responses provide a vastly more intuitive UX. And these capabilities in turn make owning and using a connected home or car much more attractive. But there is a deeper potential benefit for the connected car and connected home sellers: developing context-rich data and information about the connected home occupants and the connected car drivers and passengers. This data and information include:
  • Who is in the house, what rooms they occupy—or who is in the car, going to which destinations
  • And what they want to do or see or learn or buy or communicate at what times and locations
Mining this data will enable vendors to anticipate (and sometimes create) more demand for their goods and services. (In a sense, this is the third or fourth generation version of Google’s ad placement algorithms based on a person’s search queries.) Here’s what this means for home and auto insurers:
  • As the value propositions of connected cars and homes increase, so does the imperative for insurers to enter those ecosystems through alliances and standalone offers
  • The IPA-generated data may provide predictive value for pricing and underwriting
  • IPAs are a potential distribution channel (responding to queries and even anticipating the needs of very safety- and budget- conscious consumers)
A note on terminology: the concept of “Intelligent Personal Assistants” is fairly new and evolving quickly. Other related terms are conversational commerce, chatbots, voice control, among others.

Smartphones, Apps, and Other Stuff

Smartphones, Apps, and Other Stuff

In 1985 when I was a kid in school, one of my favorite TV shows was Robotech, also known as Macross in some regions. They had the technology (alien technology by the way) to transform fighter planes into mechanical robots (a bit like Transformers), however they did not have either cellphones or smartphones. Instead, they had mobile cabs that would travel around the city looking out for when to pick the person up. Not to mention, in some episodes, they even had some kind of Google glasses. It was all very cool stuff in 1985.

Fortunately for us all, today we have our own smart stuff in the form of a super computer in our pockets – being the smartphone. Many of us no longer need to run to a red box to make a call; and a long with smartphones we have data usage, internet, and apps.

The great challenge with smartphones for insurers, is how to engage with customers in this mobile world; that is, how to make apps attractive to them beyond the basic proposition of moving consumers to the mobile channel in order to lower the operating cost.

In insurance, availability of mobile apps varies by region and by country, so does functionality.  In most countries property and casualty insurers are taking the lead, especially to connect to auto insurance policy holders to provide them with a very array of self-servicing features through the app. In many countries, insurers need to work with the regulators hand in hand to find the best ways to boost financial inclusion and the use of insurance through digital channels.

In a recent Celent’s report, we found that at least 80% of P&C insurers in the United States, the United Kingdom, Spain, and Portugal offer apps to their clients"

In Latin America availability of consumer-focused apps in insurance grew from 21% in 2013 to 39% in 2016"

So we expect in the following years that Latin American insurers keep up other regions. Not to mention that Insurers are very interested in mobility and they plan to invest in this technology.  To learn more about this report, please click here.

Going back to my story, there were occasions where the main character couldn't be contacted because there were no mobile phones, only robots, and maybe the outcome of the story might have changed.  It was 1985 for a story created much earlier; more than 30 years ago, but now mobility, artificial intelligence, robotics, and analytics are a reality.

Technology is playing a very important role enabling insurers to engage customers, and as part of the insurance industry, we need to be aware of these advancements. If you are interested in insurance technology and want to know more of case studies around world, Celent will be awarding the best technological initiatives in our 2017 Innovation & Insight Day in Boston on April 4, 2017

Also, if you are or know of an insurance company which exhibits best practices in the use of technology, please click here and complete the nomination form. Submissions are being accepted until December 16, 2016.  Categories include:

  • Digital and Omnichannel
  • Legacy and Ecosystem Transformation
  • Innovation and Emerging Technologies
  • Operational Excellence
  • Data Analytics

For more information about the Model Insurer program click here, leave a comment, or email me directly at lchipana@celent.com. I’d be more than happy to talk with you. The Celent team and I are looking forward to hearing from you and meeting you in person at the 2017 Innovation & Insight Day.

The Best Advice is Personal

The Best Advice is Personal

Much discussion has happened in the industry portending the inevitable elimination of the insurance agent as consumers move to purchasing insurance direct and online. Disruption of the agency model seems to be a foregone conclusion judging by the amount of recent investment in InsureTech startups focused on transforming the distribution model. The increase in insurers offering commercial insurance direct may be seen as an inflection point not just in terms of commercial lines sold direct, but in terms of a shift in momentum from the agent to technology, across lines of business. It’s not surprising that both insurers and consumers are interested in a shift in channels. It promises to be less expensive for an insurer to go direct, and consumers are clearly showing a shift in preferences for accessing coverage

However, consumers use agents for very good reasons. Prior to direct purchase on the internet, consumers needed agents to access different markets. There was no mechanism for a consumer to purchase directly from an insurer. With the advent of digital agents, aggregators, and direct-to-consumer insurance insurers, this reason is less important than it used to be. However, replacing an agent isn’t as simple as simply automating access to markets.

One of the primary points of value provided by an agent is personalized advice. Although access to markets is more readily available, consumers still need advice and guidance. Insurance is a complicated product. Understanding which coverages they should purchase, what limits and deductibles are appropriate, and whether additional terms or endorsements are relevant is one of the key points of value that an agent offers.

Consumers are more financially literate than ever before given all the information available on the internet, yet still want transparency in the choices available, and value guidance and advice as to what options are appropriate and why they are appropriate. 58% of consumers surveyed say that when choosing a financial services provider, they are looking for a personalized offer, tailored to the individual firm or person.

Until an insurer can accurately and appropriately provide advice it is unlikely we’ll see a wholesale shift of the channel. Some insurers focus on giving consumers choices by providing price comparisons with other insurers. Others have tried to provide choice by labeling side by side choices with titles such as “less coverage”, “standard coverage”, and “more coverage”. But these choices don't usually have any relationship to the actual risk profile of the prospect and don’t offer any suggestion as to why one option is better than another. Consequently, consumers aren’t confident enough to make a decision.

Want to know how to improve online conversion? Provide actual advice to a prospect with an explanation as to why a particular limit, deductible or coverage is relevant. Anecdotal conversations with companies who have implemented a feature like this indicate potential conversion improvements of 20-30% or more.

Automated advice comes in a variety of permutations that vary depending on how much automation is utilized and how much personalization is provided. Insurers can assess their capabilities and determine how to proceed down the path. Even small amounts of advice seem to have an impact on conversion.

Automated advice can range from very simple parameter driven advice, to incredibly sophisticated advice-for-one backed up with sophisticated analytics. It can be delivered via simple online suggestions, or through a guided journey using a chat bot. Each successive generation of advice engine seems to bring increasing benefits when it comes to conversion.

Yet automated advice also carries potentially significant risks. The customer is relying on the technology – including the assumptions and methodologies that underlie it. For example – did the system ask the right questions; did the prospect understand the questions adequately to answer accurately; did the algorithms act as intended, were the underlying business rules appropriate?

Using third party data can mitigate some of these risks, but raises other issues including the accuracy of that data. On the one hand, consumers are more financially literate, are looking for more transparency and control, and expect insurers to utilize technology in an online environment. However, insurers also have to be careful not to be creepy when using third party data.

Insurers can overcome creepiness by not overreaching, and by clearly communicating how they arrived at their conclusions. In this transparent world, the path to the recommendation becomes nearly as important as the outcome.

Interested in learning more about automated advice engines? Check out my newest report “The Best Advice is Personal: Robo-Advisors v. Agents”.  

Changing the Landscape of Customer Experience with Advanced Analytics

Changing the Landscape of Customer Experience with Advanced Analytics

That timeless principle – “Know Your Customer” – has never been more relevant than today. Customer expectations are escalating rapidly. They want transparency in products and pricing; personalization of options and choices; and control throughout their interactions.

For an insurance company, the path to success is to offer those products, choices, and interactions that are relevant to an individual at the time that they are needed. These offerings extend well beyond product needs and pricing options. Customers expect that easy, relevant experiences and interactions will be offered across multiple channels. After all, they get tailored recommendations from Amazon and Netflix – why not from their insurance company?

Carriers have significant amounts of data necessary to know the customer deeply. It’s there in the public data showing the purchase of a new house or a marriage. It’s there on Facebook and LinkedIn as customers clearly talk about their life changes and new jobs.


One of the newest trends is dynamic segmentation. Carriers are pulling in massive amounts of data from multiple sources creating finely grained segments and then using focused models to dynamically segment customers based on changing behaviors.

This goes well beyond conventional predictive analytics. The new dimension to this is the dynamic nature of segmentation. A traditional segmentation model uses demographics to segment a customer into a broad tier and leaves them there. But with cognitive computing and machine learning an institution can create finely grained segments and can rapidly change that segmentation as customer behaviors change.

To pull off this level of intervention at scale, a carrier needs technology that works simply and easily, pulling in data from a wide variety of sources – both structured and unstructured.

The technology needs to be able to handle the scale of real-time analysis of that data and run the data through predictive and dynamic models. Models need to continuously learn and more accurately predict behaviors using cognitive computing.

Doing this well allows an carrier to humanize a digital interaction and in a live channel, to augment the human so they can scale, allowing the human to focus on what they do best – build relationships with customers and exercise judgment around the relationship.

Sophisticated carriers are using advanced analytics and machine learning as a powerful tool to find unexpected opportunities to improve sales, marketing and redefine the customer experience. These powerful tools are allowing carriers to go well beyond simple number crunching and reporting and improve their ability to listen and anticipate the needs of customers.

The 2017 Model Insurer Nominations Start Now

The 2017 Model Insurer Nominations Start Now

It’s been five months since we awarded Zurich with our top distinguished award, Model Insurer of the Year, during our Innovation & Insight Day (I&I Day) on April 13. I&I Day has been growing and gaining recognition since its inception over 10 years ago. Over last two years, more than 250 financial services professionals joined us in New York City at Carnegie Hall in 2015 and at The Museum of American Finance in 2016 to celebrate the Model Insurer winners.

From September 15, we will be accepting Model Insurer nominations. The window for new entries will close on November 30. We are looking forward to receiving your best IT initiatives. You may be announced as a Model Insurer at our I&I Day in 2017. The Model Insurer award program recognizes projects that essentially answer the question: What would it look like for an insurance company to do everything right with today’s technology? It awards insurance companies which have successfully implemented a technology project in five categories:

  • Data mastery and analytics.
  • Digital and omnichannel technology.
  • Innovation and emerging technologies.
  • Legacy transformation.
  • Operational excellence.

Some examples of initiatives that we awarded early this year are:

Model Insurer of the Year   

Zurich Insurance: Zurich developed Zurich Risk Panorama, an app that allows market-facing employees to navigate through Zurich’s large volumes of data, tools and capabilities in only a few clicks to offer customers a succinct overview of how to make their business more resilient. Zurich Risk Panorama provides dashboards that collate the knowledge, expertise and insights of Zurich experts via the data presented.

Data Mastery & Analytics

Asteron Life: Asteron Life created a new approach to underwriting audits called End-to-End Insights. It provides a portfolio level overview of risk management, creates the ability to identify trends, opportunities and pain points in real-time and identifies inefficiencies and inconsistencies in the underwriting process. 

Celina Insurance Group: Celina wanted to appoint agents in underdeveloped areas. To find areas with the highest potential for success, they created an analytics based agency prospecting tool. Using machine learning, multiple models were developed that scored over 4,000 zip codes to identify the best locations.

Farm Bureau Financial Services: FBFS decoupled its infrastructure by replacing point to point integration patterns with hub and spoke architecture. They utilized the ACORD Reference Architecture Data Model and developed near real time event-based messages.

Digital and Omnichannel

Sagicor Life Inc.: Sagicor designed and developed Accelewriting® , an eApp integrated with a rules engine; which uses analytic tools and databases to provide a final underwriting decision within one to two minutes on average for simplified issue products.

Gore Mutual Insurance Company: Gore created uBiz, the first complete ecommerce commercial insurance platform in Canada by leveraging a host of technology advancements to simplify the buying experience of small business customers.

Innovation and Emerging Technologies

Desjardins General Insurance Group: Ajusto, a smart phone mobile app for telematics auto insurance, was launched by Desjardins in March 2015. Driving is scored based on four criteria. The cumulative score can be converted into savings on the auto insurance premium at renewal.

John Hancock Financial Services: John Hancock developed the John Hancock Vitality solution. As part of the program, John Hancock Vitality members receive personalized health goals. The healthier their lifestyle, the more points they can accumulate to earn valuable rewards and discounts from leading retailers. Additionally, they can save as much as much as 15 percent off their annual premium.

Promutuel Assurance: Promutuel Insurance created a new change management strategy and built a global e-learning application, Campus, which uses a web-based approach that leverages self-service capabilities and gamificaton to make training easier, quicker, less costly and more convenient.

Legacy Transformation

GuideOne Insurance: GuideOne undertook a transformation project to reverse declines in its personal lines business. They launched new premier auto, standard auto, and non-standard auto products, as well as home, renter and umbrella products on a new policy administration system and a new agent portal.

Westchester, a Chubb Company: Chubb Solutions Fast Track™, a robust and flexible solution covering core business functionality, was built to support Chubb’s microbusiness unit’s core mission of establishing a “Producer First,” low-touch mindset through speed, accessibility, value, ease-of-use and relationships.

Teachers Life: Teachers Life has achieved a seamless, end-to-end online process for application, underwriting, policy issue and delivery for a variety of life products. Policyholders with a healthy lifestyle and basic financial needs can get coverage fast, in the privacy of their own homes, and pay premiums online in as little as 15 minutes.

Operational Excellence

Markerstudy Group: Markerstudy implemented the M-Powered IT Transformation Program which created an eco-system of best in class monitoring and infrastructure visualization tools to accelerate cross-functional collaboration and remove key-man dependencies.

Guarantee Insurance Company: In order to focus on their core competency of underwriting and managing a large book of workers compensation business, Guarantee Insurance outsourced its entire IT infrastructure.

Pacific Specialty Insurance Company: Complying with their vision is to become a virtual carrier, meaning all critical business applications will be housed in a cloud-based infrastructure, PSIC implemented their core systems in a cloud while upgrading infrastructure to accommodate growth in bandwidth demands.

If you have completed a project during the last two years that you feel is a role model for the industry, don’t hesitate to send us your initiative here. You may be the next Model Insurer of the year.

For more information about the Model Insurer program click here, leave a comment, or email me directly at lchipana@celent.com. I’d be more than happy to talk with you. The Celent team and I are looking forward to hearing from you and meeting you in person at the 2017 Innovation & Insight Day.

See you there!

Using private consumer data in insurance: Mind the gap!

Using private consumer data in insurance: Mind the gap!

Insurance is no different to other industries when it comes to capturing valuable data to improve business decisions. At Celent we have already discussed how and where in their operations insurance companies can leverage private consumer data they can find on social networks, blogs and so on. For more information you can read a report I have published this year explaining Social Media Intelligence in insurance.

Actually there are various factors influencing insurers' decision to actively use private consumer data out there including among others regulation, resources adequacy, data access and storage. I think that an ethical dimension will play a more important role going forward. More precisely I wonder whether consumers and insurers' perceptions about the use of private consumer data are divergent or similar:

  • What do consumers really think about insurance companies using their private data on social networks and other internet platforms?
  • What about insurers; does it pose an issue for them?

In order to assess this ethical dimension, we have asked both insurers worldwide and also consumers (in the US, UK, France, Germany and Italy) what where their view on this topic. To insurers, we simply asked them what best described their opinion about using consumer data available on social networks (Facebook, Twitter, LinkedIn, etc.) and other data sources on the internet (blogs, forums, etc.). To consumers, we asked what were their opinions about insurers using these open data sources for tracking people potentially engaged in fraud or criminal activity.

The following chart shows the result and indicates that there is a big gap between the two sides:

UseConsumerData

Overall what is good for consumers is not necessarily good for insurers. In the same way, what insurers want is not always in line with what consumers expect from their insurers. Going forward the question for insurance companies will be the find the right balance between the perceived value of private consumer data and customers' satisfaction. In addition, it will be tough for them to figure out the impact (pros and cons) of all factors at play in the decision to invest in technologies allowing for the efficient use of private consumer data accessible on the Internet.

At Celent, we are trying to define a framework that can help them structure their reasoning and make an optimal decision. So more to come in the coming weeks on this topic…