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October 17th - 19th,
1999
"Technology Can Solve Insurance Management Problems"
Martin Sheffield, vice president of ratings for the property/casualty division of A.M. Best Co., said technology could aid management concerns in catastrophe mitigation, efficiency, pricing and reserve adequacy, maximizing investment returns, customer retention, growth, and human resources. Those areas parallel components of A.M. Best's rating analysis, which include market profile, operating performance and capital strength--areas that A.M. Best weighs carefully when assigning ratings, Sheffield said. Sheffield spoke Oct. 18 at the A.M. Best Insurance Information and Technology Conference in Baltimore. Sheffield said the obstacles to using the latest innovations in technology to meet those concerns are legacy processing systems; the risk of alienating agents by selling through new distribution channels; limited software platforms; and deciding when to buy new technology, which quickly becomes outdated as new advances are made. Internet use has been "primarily advertising. There's a limited amount of Internet sales. Progressive is a rare exception," Sheffield said. Sheffield also said one roadblock to increasing direct selling on the Internet is regulation, which has exhibited a reluctance to embrace the sale of products without a licensed agent involved. Also, with 55 different licensing requirements in the states and U.S. territories, it's difficult to have a standard process, he said. By Meg Green |
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A.M. Best Perspective: P/C Technology
Issues & Competitiveness: 
Technology can address most of the major problems of
property/casualty insurance executives today, according to an A.M. Best Co.
analyst.