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:
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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Nicolas Bombourg |
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Reportlinker |
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Email: [email protected] |
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US: (805)652-2626 |
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Intl: +1 805-652-2626 |
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SOURCE Reportlinker
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