Other Views: Suppliers Look at 2010

Several industry partners and suppliers commented on the outlook for 2010 for the insurance industry. 2009 was a challenging year but they think there are opportunities for 2010. Here are their comments:

A Time to Focus
By Steve Herker, FLMI
Senior Business Solution Consultant
PDMA

With 2009 drawing to a close, today’s organizations are asking if next year will bring "more of the same." Economic indicators may suggest a financial recovery, yet the year ahead may show similarities to 2009.

Last year was marked by insurers’ sharp focus on core competencies, which will likely continue in the near term. We also anticipate streamlined product portfolios and risk adverse product introductions to continue in 2010. Large up-front product development investments will be analyzed and held accountable to sales results.

Fortunately, there is a silver lining. Organizations that approach these challenges with clarity will see a wealth of opportunity. Insurers that concentrate on refining their capabilities will be well positioned to reap the rewards of financial recovery.

This success begins with an honest assessment of policy administration costs. The transparent process ought to ask, "What are your per-policy costs for policy administration?" Or, "How do these costs align with other organizations?" In different times, organizations had the luxury of underestimating the impact of IT costs for introducing new products. The stark financial environment demands a new clarity to the process. It’s critical that the product development function is well defined, and that the administration platform is nimble and cost effective.

This environment also provides an opportunity to measure how internal and external customers view the organization. For example, what do your agent support capabilities say about you as an organization? What message are you conveying to customers based on your current web support and self service capabilities? Organizations that realistically answer these questions will be positioned to enhance their customer relationships.

The coming year presents an opportunity for insurers to rethink and reposition their value to customers. Getting started may be the most challenging step, and there’s no reason you can’t impact change in your organization. Begin by taking a realistic "look in the mirror" to get a clear vision of who you want to be in 2010 and beyond.

Underwriting Automation
By Steve Bryzeal
VP Business Development
RGA Technology Partners, Inc.

It is fair to say that 2009 has been a challenging year for many insurance companies and their employees as they have had to deal with difficult economic conditions, uncertain futures and, in some cases, basic survival. Capital projects for those insurance companies able to continue investing in their future are being closely scrutinized more than ever. During 2009 RGA Technology Partners (RTP) focused on spending more time with insurance companies helping them understand the benefits of underwriting automation to their bottom line. Our efforts are now paying off.

As 2010 begins we expect to see continued interest by North American insurance companies in the introduction of automated underwriting in order to deliver:

Protective value for new and existing products

Improve overall workflow processing and reducing the cost of underwriting

A scalable organization capable of meeting the expected upswings in future business

In 2010, companies will continue to face pressures to select projects with quick ROI payback periods which also produce short, mid and long term growth benefits to their organizations. We at RTP believe it will be important for those companies to find the right balance of leveraging their existing infrastructure and introducing the right level of new capital investment.

We believe that the AURA solution is uniquely positioned in the marketplace to serve both companies choosing to redesign their entire new business and underwriting process and also those that want to make their present process work better.

An Outlook for 2010
By Phil Iaccarino
Director of Marketing, Carrier & MGA Markets,
Vertafore

As the first decade of the 21st century comes to a close, insurance organizations – like so many others – face a lot of uncertainty. They will need to continue seeking out ways to gain efficiencies in their operations and will need to make sure they are making investments in order to position their business for growth as the economy improves.

What is certain is that the piecemeal approach to business development and IT investment is rapidly losing ground to a unified, more holistic strategy. Nowhere is this truer than in an insurance organization’s technology infrastructure. The decisions made about management systems effect connectivity and communication; rating systems shape the choices you make with policy and billing systems; and the decisions made by any member of the distribution chain – from agents to brokers to carrier and reinsurers – will affect all of the others.

No one understands this more than Vertafore. During 2009 Vertafore began a strategic initiative that combined the distinct companies and products of AMS Services, CIS, ImageRight, SilverPlume, and Sircon. For 2010 and beyond, Vertafore is continuing to strengthen its position as the only software and information provider that serves the entire insurance distribution chain exclusively. We leverage a unique industry presence to deliver meaningful solutions—powerful technology, critical information, and robust insights— that help you effectively respond to business challenges and capture new opportunities. We facilitate your success so you can accelerate your business performance no matter what the future holds.