Will technology keep the good times rolling for p&c insurers?

In recent years the financial results of the insurance industry have come into alignment with its traditional goal of making an underwriting profit. According to technology research and advisory firm Celent, several factors account for this. Some of the most important are changes in how the industry understands the risks it puts on its books, pays losses, and works with its customers and agents. Here Donald Light , a senior analyst at Celent, explains the contribution technology has made to improving each of these processes.

Property/casualty insurers make a lot of money on their investments, and many of them use that money to turn underwriting losses into operating profits. And yet, still, it is almost impossible to find a property/casualty insurer chief executive who tells the world, “We intend to lose money underwriting, but don’t worry, we’ll make it up with our investment income.”