Innovation in Insurance (I3) recently conducted an analyst survey to track the usage and value of information gained from insurance technology analysts. The I3 program is a student-run enterprise operating within the Moore School at University of South Carolina.
The goals of the study were to establish trends regarding how information from analysts is used within a carrier and who uses the information. I3 found Celent, Forrester, Gartner, Novarica, Strategy Meets Action, and Tower Group to be the well-known leaders in the industry and looked to observe their information and advice.
The questions were designed to ask carriers, consultants, and technicians not only about their relationships with analysts and insights regarding analyst traits, but to find carrier business plan needs, the sources they use to apply business strategy, the value of vendor solutions, and sources used in conjunction with analysts.
Upon execution of the analyst survey, I3 looked to find trends regarding what carriers find most useful to their decisions and what analyst information is actually applied to their business plans. According to the analyst survey, participants' prioritization of useful information revealed the top four analysts to be Celent, Gartner, Novarica, and Strategy Meets Action.
Other notable trends include:
- Competitor information and business trends highly regarded when looking at analyst research
- Use of analyst with strategic planning and business trends
- Free industry information, vendor analysis, and original research found most useful to make decisions
- Strategy and planning group primarily leads the carrier-analyst relationship
- Vendor profiles, original thought research, and consulting are the most significant sources from analysts' advice
- Recommendations and research papers have most influence on business strategy
- Analyst opinions are weighed against other research when evaluating options in vendor or technology decisions
- Analyst information is used primarily for support strategy and support initiatives
"We are excited to complete our first review of the analysts that serve the insurance and insurance technology industry. The review confirms there is value in their research, but brings to light the importance of balancing information from multiple sources when making strategic decision," says Frank Heaps, managing director of Innovation in Insurance. "The 2011 Analyst Survey demonstrates who has relationships with analysts, what they look for in analyst research, the usefulness and influence of information specific to analysts, and notification of information needed by carriers in the future. These trends display the needs of the industry and who has established valuable advice." To find the complete survey analysis, please visit www.innovationininsurance.com to download.
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