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Trends, Spending, and Maturity Assessments for Insurers and Agents


Authors:

Karen Furtado, Partner

Mark A. Breading, Partner

Publication Date: May 24, 2010

Number of Pages: 17

Price: $1,495.00 USD

Distribution Dynamics reports on the current state of insurance distribution and discusses functional maturity and IT investment. Companion reports, On the Horizon and Pathways, expand on the future landscape and roadmaps including solution options and IT solution provider assessments.

This report is one in a series of SMA research and analysis reports covering the distribution management functional area in the property and casualty (P&C) insurance business in North America. The Distribution Dynamics report includes: 

  • Trends and business drivers - the industry trends in distribution and the factors that insurers and agents say are triggering their IT investments
  • IT spending plans - the budget plans and types of spending for distribution from both the insurer and agent perspectives
  • Maturity assessment - the business and technology levels that insurers progress through over time, based on a new SMA Maturity Model.

Insurers identify growth through existing lines, markets, and geographic areas as their top business driver for IT investment (66%). Agents continue to be the primary channel to drive the needed growth, yet SMA survey data finds that only 32% of insurers rate agent demand as a key business driver for their IT spending. SMA research reveals that IT spending is increasing for distribution management, with 53% of insurers and 50% of agents planning increases over the next three years. SMA's maturity model positions the majority of insurers as "Mainstreamers" for distribution automation, with ample opportunities to enhance their capabilities with additional portal functionality, better self-service, improved multichannel operations, and the ability to capitalize on real-time customer insights.  

 

 

Table of Contents

  • Executive Summary 3
  • About the Research 4
  • Distribution Dynamics 5
  • Business Drivers 8
  • IT Spending Patterns 10
  • Maturity Assessment 12
  • SMA Call to Action 15
  • About SMA: Strategy Meets Action 17