NU Online News Service, May 27, 10:49 a.m. EDT

LAS VEGAS--Learning from rapid landscape changes thatoccurred through the financial crisis, insurers are looking foragile systems that can change with the marketplace, but carriersalso must incorporate customer intelligence into their technologydecisions, analysts said.

Speaking at an analyst panel discussion during the ACORD/LOMAInsurance Systems Forum here, Craig Weber, senior vice presidentwith Celent's insurance practice, said the insurance industry has a"swagger" about it as companies believe they are ready to moveforward from the financial crisis.

He said many of Celent's clients feel they have weathered thestorm of the recession, and are now looking to be successful in newways. "We've battened down the hatches," he said, describinginsurers' sentiments, "let's take the assets we have and dosomething."

Matthew Josefowicz, director, Insurance with industry analystNovarica, said insurers saw how quickly things can change in thefinancial services sector during the crisis, and now understand thecritical importance of agility in technology. "[That] message hasgotten through over the last few years," he said.

But Kimberly Harris-Ferrante, a vice president and distinguishedanalyst at Gartner Research, said agility as a technology conceptmust be balanced by customer intelligence--understanding who thecustomers are and what they want--otherwise insurers will simplyhave great new ways to make the same old products. "Just beingagile doesn't work," she said.

Mr. Weber said some carriers overplay agility as a short termneed. Companies pay a lot of money for agile systems, he said, buthe questioned how much value these insurers will get from thosesystems within six months.

Even with a "Ferrari system," he noted, the realities of thebusiness mean it still takes time to get products into themarketplace.

Mr. Josefowicz said some executives will always believe it is"cheaper to do nothing," but he said companies should look beyondthe short term or else it will be the "same drill" when they areunable to bring products to the marketplace faster goingforward.

He also said the industry should begin to examine whether it cantake all of the information it has about loss prevention and turnthat into perceived value for customers. Consumers have a negativeview of the industry, he said, because insurers are only visiblewhen something bad happens.

Ms. Harris-Ferrante said a client of hers in Florida has madestrides in this area.

She said as a hurricane approaches the region, the carrier pullsup its clients in the storm's path and calls them to discussmitigation. The insurer also attempts to find clients deals formitigation efforts at home improvement stores in the area.