Group benefits insurers are still relying on spreadsheets, disconnected systems and the knowledge of a few experienced employees to make critical pricing decisions, according to Earnix, which warns that fragmented renewal processes are creating operational inefficiencies and exposing carriers to key-person risk.

Reflecting on discussions at the LIMRA Annual Conference in Grapevine, Texas, Earnix principal solutions consultant Trent Davis said he found that manual processes remained a persistent challenge for group benefits carriers, despite the industry’s growing focus on artificial intelligence, capital pressures and changing customer expectations.

Davis said he asked insurers: “How much of your renewal cycle is spent making the decision, and how much is spent finding what you need to make it?” The question highlighted a recurring problem: teams are spending substantial time locating, consolidating and validating information rather than evaluating pricing decisions.

Much of the knowledge needed to complete these processes sits with a small number of experienced employees who understand which files to use, whom to contact and why particular underwriting rules exist. While this institutional knowledge can keep operations running, it also creates a dependency on individuals. Retirement, staff departures or an acquisition that significantly expands a portfolio can expose the fragility of these arrangements.

The challenge is particularly pronounced among insurers that have grown through mergers and acquisitions. Different portfolios may operate under the same brand while retaining separate administration systems, underwriting practices and spreadsheets. Decision-making processes can also diverge from the parent organisation’s governance standards.

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