Innovation in Insurance
Analyst Survey
Innovation in Insurance announces
the results of their first annual
insurance technology analyst survey.
This analyst survey was created to
track the usage and value of
information gained from insurance
technology analysts. The goals of the
study were to establish trends
regarding how analyst information is
used within a carrier and who uses the
information.
Survey
The survey itself was divided into two
sections, with a total of 20 questions.
The questions were designed to ask
carriers, consultants, and technicians
information not only about their
relationships and insights of analyst
traits, but dug to find carrier business
plan needs, the sources they use to
apply business strategy, the value of
vendor solutions, and sources used in
conjunction with analysts’ advice.
Profile of Companies
Surveyed
i3 surveyed the
information and advice
of analysts Celent,
Forrester, Gartner,
Novarica, Strategy
Meets Action, and
Tower Group. Celent,
Gartner, Novarica, and
Strategy Meets Action
were found to be
recognized as the well-
known leaders in the
industry.
1 April 10, 2011
Trends
Upon execution of the analyst survey,
i3 looked to find trends in what
carriers find most useful to their
decisions and what analyst
information is applied to their business
plans. According to the analyst
survey, participants’ prioritization of
useful information revealed a trend to
include Celent, Gartner, Novarica, and
Strategy Meets Action as the top four
analysts.
Other notable trends include:
 Competitor information and
business trends highly regarded
when looking at analyst research
 Use of analyst with strategic
planning and business trends
 Free industry information,
vendor analysis, and original
research found most useful to make
decisions
 Strategy and planning group
primarily leads the carrier-analyst
relationship
 Vendor profiles, original
 thought research, and consulting are
the most significant sources from
analysts’ advice
 Recommendations and
research papers have most influence
on business strategy
 Analyst opinions are weighed
against other research when
evaluating options in vendor or
technology decisions
 Analyst information is used
primarily for support strategy and
support initiatives
Results
Responses came mostly from those
who looked for advice concerning
competitor information (83%) and
business trends (83%) from their
analyst’s information. The survey
showed that carriers consider advice
focused on strategic planning (69%)
and business trends (44%) to be most
influential. According to results, this
analyst advice is mostly used for
support strategy (87%) and support
initiatives (53%) within their business,
and is preferred to be reported in
white papers (73%) and briefings
(53%) as opposed to longer reports.
Recommendations (50%) are found to
be most influential within carrier
strategy, with research papers and
vendor rankings a second option.
2 April 10, 2011
When making decisions for their
business, carriers find the most useful
information sources from analysts to
be free industry information (60%),
vendor analysis (47%), and original
research (47%). In general, when
seeking advice from analysts, sources
used most include vendor profiles
(67%), research original thought
(60%), and consulting (53%).
The survey took a closer look at the
usefulness of the analyst information
and sources in relation to technology
trends and information, solution and
software selection, business trends,
and recommendations for technology
enabling business needs. The results
established a trend involving Celent,
Gartner, Novarica, and Strategy
Meets Action as the most useful
information producers. When
information is used for
technology trends, Celent (43%)
and Novarica (43%) were found
to be most useful, with Forrester
(36%) and Gartner (36%) ranked
close runners-up. Celent (58%)
and Novarica (67%) are
considered most useful when it
comes to information for solution and
software selection, while Forrester
(42%) and Gartner (50%) follow close
behind. Business trend information is
found to be most useful when
developed by Celent (77%) and
Novarica (69%). followed by Strategy
Meets Action (50%). Again, Novarica
(69%), Strategy Meets Action (58%),
and Celent (46%) lead for
recommendations of technology
enabling business needs.
Participants were asked to pair each
analyst with an attribute that they
found most associated with the firm.
These attribute options consisted of
quality, independence, accountability,
ethics, experience, and research. For
the analysts that took precedence
throughout the survey, Celent,
Novarica, and Strategy Meets Action
were matched in the category of
Research. Quality was selected as
the feature possessed by Gartner and
Experience was chosen for Forrester
and Novarica.
Analysts’ opinions are weighed
against other research (93%) when
evaluating options in vendor or
technology decisions. In fact, 79% of
respondents say that they use
information other than analysts for
background. This includes industry
documentation like journals,
publications, associations, and trends.
The media is also utilized with tools
such as magazines, blogs, websites,
and annual reports. Within a
business’s internal environment,
vendors also use their personal
network, their internal knowledge
team, case studies, and even
colleagues or peers to
uncover information.
As the survey suggests,
strategy and support
initiatives are the areas of
concern when using
analyst sources. Insurance
carrier strategy or planning
groups (57%) were found
to have the most
established relationships
with analysts. As
expected, the Chief
Information Officer (43%) and Chief
Executive Officer (36%) are also
closely associated in the business-
3 April 10, 2011
analyst relationship. In addition, many
noted that sales and marketing
divisions as well as product
management groups develop a
significant connection with analysts
(36%). These relationships can
generate rapport and respect between
vendors and analysts.
The survey asked for feedback
regarding judgments on perception
and insight of analysts. Responses
suggested Celent (69%) and Novarica
(69%) to be most trustworthy in their
provided advice. Gartner (61%) and
Strategy Meets Action (61%) equally
trail right behind these leaders.
Short Answer - Free Response
Analysis
Participants were then asked to
provide a few short answer
responses. The first open-ended
question was about the basis of
vendor-analyst relationships. The
trend was positioned toward the
quality of relationships developed as
opposed to simply knowledge or
advice offered. Some suggested that,
when needed, a general industry
knowledge-oriented component
should be added to the already
existing component of the relationship
regarding the specific company.
The survey explored the question of
whether it was felt that industry
analysts notify companies of all
innovations and solutions vendors in
the industry, or if the information was
in some way biased. The trend across
the board named analysts’ reports to
be biased based mostly off of
“favoritism” or “buzz.” One contributor
stated, “My perception is that
vendors…can be swayed by buzz or
coolness to a certain degree. I also
think that there are some analysts that
have a tendency to favor certain
vendors (perhaps because they spend
a good deal of money on their
services),” implying that analysts may
promote technology vendors who
contract with them for consulting.
Another response suggested a way
the industry could overcome this
inefficiency: “There is no way for any
firm or analyst to keep track of all
innovations, hence the need to speak
to peers as well…”
To wrap up the survey, i3 asked
carriers to determine what additional
information was needed and to share
4 April 10, 2011
the needs of their business plan. We
received various responses and found
a trend relating to the need of results
experienced by other carriers,
including peer, competitor, global, and
sales and marketing trends and
cases. Firms that can deliver
information regarding identification of
trends and report of best practices to
carriers were implied to have value.
Carriers stated that information was
needed about not only a vendor’s
solution, but also the results of
implementation within the firm.
Another trend claimed a need for
innovative strategies and ideas that
affect the areas of carrier revenue,
expenses, experience and results,
and regulatory compliance.
Currently, carriers deem the solutions
to meet their efficiency initiatives,
expense reductions, and support
strategy decisions. Others believed
most solutions were not specifically
meeting their needs. It was suggested
that analysts’ recommendations
directly relate to the needs of the
specific carrier instead of addressing
the entire industry: “Businesses need
a plan that can serve as a roadmap to
guide the development of our
business…”
Noticeably, the responses were varied
regarding the meeting of carriers’
business plan needs. As one
contributor suggests, “There is not
always a perfect fit …between
solutions and the business plan…
[We] value advice that helps to guide
our strategy as well as to recommend
best possible fit ...”
Summary
“We are excited to complete our first
annual review of the analysts that
serve the insurance and insurance
technology industry. The review
confirms there is value in their
research, but brings to light the
importance of balancing information
from multiple sources when making
strategic decision,” states Frank
Heaps, Managing Director of
Innovation in Insurance. In summary,
the 2011 Analyst Survey
demonstrates who has relationships
with analysts, what they look for in
analyst research, the usefulness and
influence of information specific to
analysts, and notification of
information needed by carriers in the
future. These trends display the needs
of the industry and who has
established valuable advice.
About i3
The i3 program is a unique student-
run enterprise operating within the
Moore School at USC. The purpose of
www.InnovationInInsurance.com is to
foster innovation in the way insurance
is practiced by providing a portal to all
online resources helpful to insurance
technology, services, and outsourcing.
News and announcements from the
insurance technology industry are
published on the i3 website, and the
leading stories of the week are
published in our newsletter to our
nearly 1200 subscribers. For more
information about i3, contact Frank
Heaps at i3uscadmin@gmail.com.
5 April 10, 2011
About the Moore School
The Moore School is known for its
strong academic reputation in
insurance – ranking among the top ten
in the country among business school
insurance programs in U.S. News &
World Report. The School also
receives strong business support in
the community with various
benefactors providing for
approximately 25 scholarships for
undergraduate business students in
insurance and risk management.
Founded in 1919, the school has a
history of innovative educational
leadership, blending academic
preparation with real-world experience
through internships, consulting
projects, study-abroad programs, and
entrepreneurial opportunities. The
Moore School offers undergraduate,
master’s, and doctoral degrees, as
well as distinctive executive education
programs. In 1998, the school was
named for South Carolina native and
New York financier Darla Moore,
making the University of South
Carolina the first major university to
name its business school after a
woman. For more information, visit
http://www.moore.sc.edu.
For more information about i3, contact
Frank Heaps at
i3uscadmin@gmail.com.