Reportlinker Adds 2010 State of the US Insurance Industry: Successfully Competing During a Time of Societal Disruption (Strategic Focus)

NEW YORK, May 25 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

2010 State of the US Insurance Industry: Successfully Competing During a Time of Societal Disruption (Strategic Focus)

http://www.reportlinker.com/p0201755/2010-State-of-the-US-Insurance-Industry-Successfully-Competing-During-a-Time-of-Societal-Disruption-Strategic-Focus.html

Introduction

The financial crisis badly battered the financial strength and reputation of US insurance companies. The crisis also reshaped the market to the point where competitive success mandates that insurers generate profitable growth rather than controlling expenses or streamlining processes. This necessitates insurers to consider technologies supporting growth initiatives.

Scope

*US Life & Annuity and Property & Casualty insurance companies

*This report covers strategies US insurers should pursue post-crisis

Highlights

The financial crisis has brought into sharp relief two lessons for US insurers. One, implement a growth strategy and two, adopt four business imperatives addressing market behavior, risk awareness, long-term financial viability and providing a compelling customer experience.

Technology firms have to decide how to support insurance companies post-crisis: offer a portfolio of insurance services and solutions that support insurers needs in the post-crisis market or one that perpetuates a pre-crisis strategic perspective.

Reasons to Purchase

*This research enables insurers to select from several growth strategies

*This research specifies four business imperatives insurers must adopt

SUMMARY 1

Catalyst 1

Ovum view 1

Key messages 2

Insurers must decide if they will pursue a cost-control strategy or a growth strategy 2

There are four core business imperatives L&A and P&C insurers must adopt in this newly disrupted marketplace 2

It is critical for insurers to achieve organizational agility in the post-crisis marketplace 2

Insurers must communicate throughout the company that the tone and nature of the market has dramatically changed 2

Technology vendors must enable insurers to become more informed or more agile or both 2

Table of Contents 3

DRAMATICALLY DISRUPTING THE INSURANCE MARKET 4

Consumers have been frightened into frugality 5

Warm cookies are nice but they are not generating sales of new or existing homes 7

L&A and P&C insurers always have to factor four major forces into their plans 8

L&A and P&C insurers face a frenetic post-crisis environment 9

RESHAPING THE INSURANCE BUSINESS FOR COMPETITIVE SUCCESS 10

Insurers must decide if they will pursue a cost-control strategy or a growth strategy 10

Insurers will find safety but not growth in pursuing a Briar Patch strategy 11

Insurers will find opportunistic growth by pursuing a Venus Flytrap strategy 11

Insurers wanting to generate more business from existing clients should pursue the Cultivate strategy 12

Insurers wanting to generate revenue from new markets should pursue the Explore strategy 13

In this newly disrupted marketplace, insurers must adopt four core business imperatives 14

Insurers must achieve organizational agility in the post-crisis marketplace 16

Insurers should continue to improve core administration system (CAS) functionality 17

Organizing related Go-To-Market (GTM) functionality together will sharpen how insurers reach and acquire business from their target markets 17

Combining related financial management (FIN) functionality will enable insurers to gain a better sense of the monetary flows in and out of the company 17

Cross-enterprise activities will necessitate bringing multiple groups together 18

TECHNOLOGY'S ROLE ENABLING INSURERS TO become INFORMED AND AGILE 19

Becoming more informed and agile takes multiple forms for market-facing operations 19

Insurers must become smarter about their underwriting and claims management 19

Insurers should invest in location intelligence solutions to better determine which markets to penetrate 20

Being better informed is not enough; insurers cannot achieve agility without strengthening distribution management 20

Insurance companies must have a single customer view (SCV) to provide a compelling customer experience 21

The long-term financial viability of insurers mandates that they have strong risk management and performance management capabilities 21

Insurers must improve their core administration systems 22

Business intelligence and analytics are part-and-parcel of insurers becoming more agile 22

RECOMMENDATIONS 24

Recommendations for insurers 24

Accept that the tone and nature of the market have dramatically changed 24

Shift rapidly from a silo mindset to an enterprise mindset 25

Become more informed by embedding analytics in business acquisition and core administration systems and more adept at managing information flows 25

Become more risk-aware by developing strong ERM and performance management systems 25

Recommendations for vendors 26

Provide insurers with SOA-developed solutions to become more agile 26

Offer core administration solutions with embedded analytics 26

Continually adjust the solution road map based on insurers' appetite for changing technologies 26

Alternative views 28

APPENDIX 30

Ask the analyst 30

Definitions 30

Further reading 31

Disclaimer 31

List of Figures

Figure 1: US unemployment rates (%), by age group, October 2009-February 2010 5

Figure 2: US personal savings rate (%),1980-2009 (selected years) 6

Figure 3: New US building permits for single and multiple units (000s), 2004-09 7

Figure 4: Major forces impacting the US L&A and P&C insurance industries 9

Figure 5: Four strategic choices for the post-crisis market 14

Figure 6: Four core business imperatives for US L&A and P&C insurers 16

Figure 7: Organizing for agility in a post-crisis market 18

Figure 8: Suggested priority order of initiatives applying business intelligence and predictive analytics 24

Figure 9: Mapping of insurance industry familiarity and likelihood to invest in current insurance technology applications 28

To order this report:

Insurance Industry: 2010 State of the US Insurance Industry: Successfully Competing During a Time of Societal Disruption (Strategic Focus)

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SOURCE Reportlinker

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