Of Much-Hyped Technologies for Insurers, Mobile Generating Most Buzz Among CIOs

The insurance-technology space has seen newer ways to analyze data, interact with consumers and store information, but while CIOs in a recent survey indicated mobile capabilities are proving their worth, few responses related to other much-hyped areas such as social media, big data or cloud.

A recent Novarica survey asked 73 insurer CIOs and other senior IT executives, “What is the best, most effective or coolest thing you've done in the past 12 months as a CIO?” Novarica says 39% of the respondents said new technologies, 31% said execution and 30% said improving practices.

Regarding new technologies, Novarica called out the benefits of mobile, noting, “While some developments' benefits have yet to be measured, new mobile capabilities are garnering excellent feedback from throughout the value chain.”

Of the 20% of respondents who provided examples of new mobile applications, Novarica says most related to policyholder self-service, such as reviewing auto premiums, making online payments and reporting claims. 

Insures have also implemented mobile apps for agents so that they can provide quotes and premium calculations.

“Based on feedback from reps,” says Novarica, “the apps have anecdotally shown themselves to have a positive impact on sales.

And the benefits go beyond functionality for consumers and agents. One respondent explained how launching an app for the insurer's board of directors has helped shine a light on the benefits of technology in general. The respondent said, according to Novarica, “By getting the BOD up on iPads, it underscores the importance of technology in a more meaningful way than delivering projects for our business.”

Another respondent said one mobile app allowed the insurer to contact end users and ask them for feedback regarding about making their mobile experience more effective. “We explain how to do things; what apps are available. Problem solved. The end users really appreciate it,” the respondent said.

Other new technologies that respondents mentioned as their most meaningful accomplishments included portals (overhauling the point-of-sale system for independent agents and launching new web first-notice-of-loss systems) and business intelligence and predictive analytics (mainly focused so far on distribution optimization or improving internal reporting).

While cloud—in addition to social media and big data—did not factor prominently in the survey responses for new technologies, Novarica says those that have transitioned to cloud “are impressed with the speed and savings” they have seen.

For the 30% of respondents who reported improving practices as their most meaningful work, business/IT alignment, IT organization and Agile application development were the most common responses.

Regarding business/IT alignment, CIOs have been able to show the benefits of IT within business units through:

• Collaborative work spaces.
• Spending more time on the road with field staff.
• Improving IT steering process for senior management.
• Officer retreats.
• “Bridge the gap” shadowing programs with business units.
• Open technology roadmap discussions.
• Adopting a business capability model approach.

Regarding the 31% of respondents who discussed better execution as their most meaningful work, Novarica says legacy conversions figured heavily.