HCCI Expands Access to Data, Announces New Pricing Policy

NIALL BRENNAN | November 1, 2017

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Access to high-quality data is the bedrock of cutting-edge, evidence-based research. However, as many AcademyHealth members can likely attest, accessing the right data for a study is rarely as simple as it sounds and can be subject to a host of barriers. As policymakers continue to struggle with the question of how to improve the American health care system, access to high-quality data becomes increasingly critical for health services research

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Indiana Farm Bureau Insurance

Indiana Farm Bureau Insurance has protected fellow Hoosiers for more than 80 years. Organized in 1934 by Indiana Farm Bureau, Inc., our family of companies has grown to include insurance products for auto, life, home, business and farm. Banking and other financial services and products are also available. With a home office in downtown Indianapolis and local offices in all 92 counties, Indiana Farm Bureau Insurance serves Hoosiers with more than 450 agents and nearly 1,200 employees, who live and work throughout the state. Our company is a leader in auto and home owner’s insurance and the largest writer of farm insurance in the Hoosier state.

OTHER ARTICLES

10 Most Impactful AI-based Insurance Innovations of 2019

Article | April 13, 2020

The year 2019 has been a benchmark in insurance innovations that brought in new value propositions to the industry. What’s more remarkable is — both traditional Insurers and Insurtechs are striving to offer simple, convenient, and value-added customer-centric products coupled with technology initiatives. Here are 10 noteworthy insurance innovations that shaped the industry this year.

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Can You Get Business Insurance without a Business License?

Article | March 16, 2020

Opening a business brings many questions, and the very fact that you’re interested in learning more about insurance for your company demonstrates your responsibility as an entrepreneur. In most cases, you don’t need to have your business license yet to purchase insurance for your company, which means you can get started on this critical task right away. However, you should know there are certain types of insurance you may be required to carry in order to get or maintain your business license. There are also other types you should obtain to protect you from the consequences of lawsuits or unexpected events down the road.

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3 ways AI is transforming the insurance industry

Article | February 24, 2020

As AI, big data, and the internet of things (IoT) find their way into every aspect of our lives, many industries are undergoing a transformation. “Insurance executives believe that artificial intelligence (AI) will significantly transform their industry in the next three years, with insurers investing in AI to empower agents, brokers and employees to enhance the customer experience with automated personalized services, faster claims handling and individual risk-based underwriting processes,” consulting firm Accenture forecasted in 2017.

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Will your insurance IT investments pay off?

Article | April 12, 2021

Automated claims processing, price comparison platforms, mobile bill paying—these are just some of the digital services that insurance customers expect and insurers want to provide. As the demand for digital skyrockets, so does the need for insurers to invest in IT. In the past seven years, the share of IT in total operating costs of property-and-casualty (P&C) insurers increased 22 percent. The rise of digital means technology is no longer a cost center. Rather, it is an asset that, if managed well, can increase growth and profitability. But do these IT investments pay off? As the COVID-19 pandemic exacerbates already increasing cost pressures, insurers’ IT budgets are under scrutiny; they want to see the business impact of their IT investments. Insurers with targeted IT investments achieve better growth and performance Data from McKinsey’s Insurance 360° benchmarking survey provide strong evidence of the positive business impact of targeted IT investments. In fact, insurers that invest more in technology outpace competitors that don’t pursue targeted investments in business measures such as gross written premium (GWP) growth, return to shareholders, and expense and loss ratio (exhibit). As an example, in life insurance, companies that invested more in IT saw a greater reduction in expense ratios (by 2.0 percentage points) and higher returns on technical reserves2 (1.7 percentage points) when compared with insurers with lower IT investments. Insurers achieved these outcomes within three to five years of making their investments. For P&C insurers, those with high IT investments achieved approximately twice the top-line GWP growth of low IT investors. High IT investments also produced a greater reduction in combined ratios when compared with those with low IT investment. Four areas for targeted IT investment So what kinds of technology investments can help insurers achieve growth and improve productivity and performance? Investments in four areas are critical: Marketing and sales: Marketing technology solutions can increase sales and processing efficiency, improve the quality of core customer-facing processes such as policy inquiries and policy applications, and improve customers’ overall experiences. McKinsey’s Insurance 360° benchmarking data show that tech investments in this category can facilitate top-line growth for P&C insurers by up to 20–40 percent; for life insurers, that growth could be 10–25 percent over a three- to five-year period. Underwriting and pricing: Automated underwriting fraud detection can improve the likelihood that insurers correctly identify fraud and set accurate prices. A pricing tool kit that analyzes pricing across competitors and enables a flexible, more segmented market versus technical pricing further improves profit margins. Insurers that deploy these and other product, pricing, and underwriting technologies have seen improvements in their profit margins by 10–15 percent in P&C insurance and 3–5 percent in life insurance. Policy servicing: Workflow automation, artificial intelligence–based decision support, and user experience technologies in policy servicing and within IT can improve the customer self-service experience and automate back-office processes, thus reducing IT and operations expenses. And state-of-the-art self-servicing options will reduce processing times and even improve customer experience. An analysis of programs for large-scale insurance IT modernization finds that insurers that deploy these and other product, pricing, and underwriting technologies have seen improvements in their profit margins by 5–10 percent in P&C insurance and 10–15 percent in life insurance. Claims: P&C insurers can use automated case processing—machine-learning technology trained to process basic claims cases—to segment more complex cases and significantly improve claims accuracy. Combined with better partner integration and steering technologies embedded in a transformation of the claims operating model, such technologies can help P&C insurers improve profit margins by 25–40 percent, according to McKinsey analysis of large-scale IT modernization programs. To realize the full value of IT investments, insurers must strategically allocate their resources and view tech as an asset, not a tool.

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Spotlight

Indiana Farm Bureau Insurance

Indiana Farm Bureau Insurance has protected fellow Hoosiers for more than 80 years. Organized in 1934 by Indiana Farm Bureau, Inc., our family of companies has grown to include insurance products for auto, life, home, business and farm. Banking and other financial services and products are also available. With a home office in downtown Indianapolis and local offices in all 92 counties, Indiana Farm Bureau Insurance serves Hoosiers with more than 450 agents and nearly 1,200 employees, who live and work throughout the state. Our company is a leader in auto and home owner’s insurance and the largest writer of farm insurance in the Hoosier state.

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