| Copyright: | PR Newswire | | Source: | PR Newswire | | Wordcount: | 764 |
NEEDHAM, Mass., Nov. 1 /PRNewswire/ -- Many US life insurance industry
executives believe their respective companies are late adopters in regard to
the automation of the life insurance underwriting process, according to a 2006
survey conducted by TowerGroup in partnership with industry publication
Insurance Networking News.
The survey, which polled a representative sample of US life insurance
industry executives representing the spectrum of life insurance products
offered in the marketplace, revealed that growing revenues, improving
profitability, and driving operational efficiency head the list of life
insurance carriers' top strategic business initiatives. However, TowerGroup
discovered that life insurers feel their ability to meet these goals is
constrained by technological inefficiencies -- ones that could be ameliorated
by IT investments targeted to support product management, operations, and
distribution.
"Although TowerGroup finds that the life insurance industry has strong
growth potential, based on converging trends in products, demographics, and
distribution, insurance carriers are being held back by their inability to get
life insurance products to market quickly and to underwrite new business
efficiently," said Cindy Saccocia, research area director of the Insurance
research service at TowerGroup. "The survey results demonstrate the
importance of investing in technology that can support these key areas."
Highlights of the survey include: * Life insurers face a common set of business challenges within the underwriting process, relative to product management, operations, and distribution. These challenges run the gamut from making better and faster changes to business rules, to ensuring compliance in a tough regulatory environment, to pushing enhanced products and services through responsive delivery channels. Most survey respondents say they hope to effect improvements to these core business issues within one to three years. * Yet the survey also revealed disconnects between how executives view business and IT strategic initiatives. Though product management is critical to meeting top business objectives, a surprising number of respondents ranked this area as a last priority on the technology front. Findings like these suggest that life insurers must gain further understanding of which IT functional areas fuel core objectives -- or inhibit their progress. * Business process management, modernization of legacy platforms, and infrastructure consolidation are all IT strategic initiatives critical to supporting functional areas in the life insurance underwriting process.
Saccocia continued, "Carriers must clarify their understanding of the
needs of product management so they can better determine what technologies are
required in order to shorten the development and life underwriting cycles.
Only by fully appreciating the internal obstacles to achieving optimal
underwriting performance and outcomes will carriers be able to overcome them."
The study polled 3,000 Insurance Networking News subscribers on business
and technology readiness in the life insurance segment, garnering a 1.5%
response rate representative of the overall industry profile. The survey was
fielded to meet two goals: to identify current business and technology
capabilities necessary for life insurance companies to maintain or increase
their competitive position in the marketplace; and to assess the level of
change insurance executives desired or planned over the next five years.
Three related TowerGroup reports on life insurance underwriting by
Saccocia are available to qualified members of the press for review.
* "US Life Insurance Industry Survey Data: Is Technology What's Holding the Business Back?" * "Life Insurance Underwriting: Applying Lessons Learned by Property and Casualty Insurers" * "The State of US Life Insurance: Product Growth, Buyer Profiles, and Distribution Methods"
Those interested in purchasing a copy of any TowerGroup report or
subscribing to a TowerGroup research service may call +1.781.292.5200 or email
service-info@towergroup.com.
At TowerGroup, Saccocia's research covers all aspects of the insurance
industry, including: outsourcing, underwriting, retirement, mobile technology
and IT spending.
About TowerGroup: TowerGroup is the leading advisory research and
consulting firm focused on the global financial services industry. A respected
source for trusted information and advice, TowerGroup brings many of the
world's leading financial institutions, technology companies, and professional
services firms a deeper understanding of the business and technology issues
impacting their organizations. Headquartered near Boston in Needham,
Massachusetts, and with offices in North America, Europe, and the Asia-Pacific
region, TowerGroup serves a global client base. Visit
http://www.towergroup.com for more information.
About Insurance Networking News: Insurance Networking News is a trusted
source for information on how technology is being implemented to support
insurers' strategic business objectives, providing insightful analysis of--and
case studies on--how technology is being innovatively utilized to automate
critical processes. Headquartered in Chicago, Insurance Networking News is a
SourceMedia publication. Visit http://www.insurancenetworkingnews.com for more
information.
Contacts: Anne Green Rachael Adler p. +1-212-455-8017 p. +1-212-455-8037 agreen@cooperkatz.com radler@cooperkatz.com
SOURCE TowerGroup
CONTACT: Anne Green, +1-212-455-8017, agreen@cooperkatz.com, or Rachael Adler, +1-212-455-8037, radler@cooperkatz.com, both for TowerGroup
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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