Underwriting Automation

Insurer Plans and Trends

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Author(s):

Deborah M. Smallwood, Senior Partner

Publication Date:

February 20, 2012

Number of Pages:

30

Price:

$1,495.00 USD

This report is part of a series of SMA research reports on specific insurance capability areas in the North American insurance industry. The series covers vertical capabilities such as distribution, underwriting, policy administration and claims, as well as horizontal areas including customer communications and content management, and data and analytics.  

There is a new interest in how underwriting automation can improve top and bottom line results. We are on the cusp of a shift in thinking, attitude, and action, with survey respondents saying they are allocating a significant percentage of their IT budget to underwriting. This report provides an insightful profile of the state of underwriting automation and looks at factors that are influencing spending decisions - giving a view of what is happening today, as well as what insurers have planned for the coming three years. The research data for this report is based on data gathered from 144 insurer survey responses, interviews with market leaders, secondary research, and direct SMA experience in working with our clients. The data aligns to the industry's business mix and company sizes and represents a good balance of business and technology responses, with nearly three-quarters of respondents holding leadership and/or management positions.

For insurers, the data points and insights presented are useful for tracking IT spending against industry trends, examining priorities, and monitoring the pulse of attention and automation in the underwriting area. For IT solution providers, the data and accompanying observations on insurers' spending patterns and buying behaviors yield useful information for setting product development roadmaps and refining marketing strategies and priorities. For industry watchers, including analysts, venture capitalists, and executives evaluating partnerships and acquisitions, the data and analysis provide rich information for assessment and use in determining evaluation criteria for investments. An example of the research data is shown in the figure below.

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