Technology's Effect on Property–Casualty Insurance Operations
The post-Glass–Steagall era has presented insurers with new opportunities and risks during a time when information flows and business processes are being impacted by changing technology. In this article, we explore how insurers use and perceive current technology to carry out their operations by reporting results from a sample of insurers that includes some of the nation's largest property and casualty insurers. We find among insurers in our sample that an online channel is having a significant impact on customer retention and revenue enhancement, but a lesser impact on cost reduction. Interestingly, about two-thirds of our sample has experienced an increase in their overall number of transactions following the adoption on an online channel. Moreover, while the Internet is perceived as giving marketing benefits it is not being used as a substitute for agents. We find that 65 percent of respondents have used technology to integrate customer data across functional areas and another 23 percent plan to do so in the next 3 years. Nearly 71 percent of respondents have or plan to adopt service-oriented architecture in their technology infrastructure.
Document Type: Research Article
Publication date: 2010-03-01