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A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
A new era in Insurance: Cloud Computing Changes the Game report 2013
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A new era in Insurance: Cloud Computing Changes the Game report 2013

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Accenture: A new era in Insurance: Cloud Computing Changes the Game report 2013

Accenture: A new era in Insurance: Cloud Computing Changes the Game report 2013

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  • 1. A new era in insuranceCloud computing changes the game
  • 2. Table of contentsHow cloud computing will reshape the insurance industry 4High cloud activity emerging 6Usage-based insurance (UBI) enabled by telematics Insurance carriers shifting priorities for cloud Core transaction processing in the cloud Multichannel consumer outreach Cloud computing: A quick primer 10The shape of insurance clouds to come 12Trend 1: Real-time data collection Trend 2: Using cloud stack for agility, test-and-learn Trend 3: Deeper customer engagement Cloud maturity model for the insurance industry Stepping into your future in the cloud 18A perception shift 192
  • 3. 3
  • 4. How cloud computing willreshape the insurance industryThe convergence of three technologies – cloud, mobility, and advancedanalytics – is transforming the value proposition that insurance companiesoffer their customers. As competitive pressures within the industry increasefrom non-traditional rivals, as well as an ever-widening stable of productofferings from traditional competitors, insurance companies will turn totechnology for assistance in this changed environment. We believe thatthe first movers – those organizations that form a strategy to help moldthe change rather than reacting to it – will have an advantage over slower-moving competitors.To prosper in this new environment as the rules of the game shift, webelieve insurance companies can look to the cloud, in conjunction withother technologies, to help drive two fundamental changes:1. Reinventing of their business models, including redefining their core competencies, to offer new services well beyond the confines of the old insurance model, and build new networks of partners.2. Creating of direct, multi-channel relationships with customers, with the goal of exchanging value (in the form of services and lower rates) for real-time data that can be used to accurately gauge risk.4
  • 5. A new business modelHow will carriers use the cloud to drive thesefundamental changes? Three trends in the industryshow the way.Trend 1 Trend 2 Trend 3Real-time data collection from Carriers will increasingly leverage the Customers will be encouraged tomultiple sources will become core full cloud stack to gain agility and engage more deeply with theirto carriers’ business and a primary enable a test-and-learn culture. insurance company as the publicsource of innovation. image of insurance carriers shifts.First, real-time data collection from Second, with competition increasing from Third, many of the new services willmultiple sources will become core to non-traditional players, carriers must move require direct relationships with loyalinsurance carriers’ business and a primary fast. They need the computing power to customers. That requirement is a triggersource of innovation. Real-time data will handle big data. They need to bring services for the insurance industry to evolvenot only allow carriers to offer better to market quickly and create networks of from a product-centric to a customer-pricing and better estimate risk. In addition, partners in which the insurance carrier is centric model. As part of that evolution,the data will serve as the basis for the new at the center of the customer relationship. carriers are actively trying to changeservices and products by which carriers will To achieve these goals, carriers will need the public’s perception of insurance as areinvent themselves. different types of cloud services. grudge purchase.Before we delve into these trends in greater detail, let’sset the stage by looking at areas of high activity in thecloud within the insurance industry. 5
  • 6. High cloud activity emergingCloud computing and virtualization are top prioritiesfor insurance executives, as witnessed by industrysurveys and high levels of management awareness.Usage-based insurance (UBI) enabled Beyond the device itself, there are manyby telematics facets of telematics-based services that insurers must address. For example,Telematics — channeling real-time data they must accumulate, process, andfrom cars to insurers — is a decade-old analyze data from potentially millionsidea to which the cloud has given wings. of cars as well as build websites so thatConsumers plug a device into their cars, consumers can view their own drivingthat device conveys data to the insurer, and behaviors. A multitude of vendors arethe insurer adjusts consumers’ individual raising their hands, eager to help insurancepremiums based on how they drive. In carriers access these capabilities.some cases, the systems even coach thedrivers while they are behind the wheel. Telematics also illustrates how disruptiveThose with poor driving patterns pay for real-time client data can be for thethe risks they represent, while safe drivers traditional insurance business model. Frombenefit from better rates. this fountainhead a stream of new services is now beginning to flow.Most major carriers have a telematicsinitiative underway today. Indeed, many Take the IntelliDrive Fleet Safety Solutionscarriers, such as Progressive Casualty program from Travelers IndemnityInsurance Company with its Snapshot Company, which provides consultingdevice,1 have already launched telematics services and resources to fleet owners.products into the marketplace. Within two IntelliDrive combines telematics with ato three years, what was a competitive software-as-a-service (SaaS) location-advantage will become a requirement for intelligence platform (by Telogis). Thiscompeting in the car insurance market. solution provides customers with feedbackWe believe fast adopters will migrate to on everything from speeding and hardusing cloud-based real-time analytics, not braking to the data needed to eliminatehistorical predictions, as the foundation of false or exaggerated third-party claims.3underwriting and pricing.With the lure of a potential 30 to 40percent reduction in premiums, consumersare proving quick to let insurers be theirvirtual backseat driver. The number ofdrivers with telematics devices in their carsis projected to jump from 1.85 million in2010 to 89 million by 2017 – a compoundannual growth rate of 90 percent.26
  • 7. Insurance carriers’ shifting prioritiesfor cloudFrom Gartner’s Hype Cycle for Property & Casualty (P&C) Insurance2012: “According to Gartner’s 2012 CIO survey among 85 insurers, cloudcomputing is among the top five IT priorities of CIOs. Additionally, a recentGartner webinar survey among 116 life and P&C insurers revealed that 41percent of respondents are already using cloud computing productively,with another 41 percent currently implementing or planning to implementthis new style of computing during the next six to 12 months.” Cloudadoption for the industry is in Gartner’s technology trigger stage, five to 10years to widespread adoption.4Another Gartner report, A Quick Look at Cloud Computing in the InsuranceIndustry, noted: “According to a client survey among 116 insurancerepresentatives during a January 2012 Gartner webinar, more thantwo-thirds of insurers use cloud computing productively, are currentlyimplementing it or run it in pilot mode somewhere.”5Gartner cautions, however: “These figures seem to be quite high, butinsurers are notorious for running hundreds, or even thousands, of differentapplications. Based on Gartner’s market insight, there are hardly any insurersthat have developed a holistic cloud strategy. Many organizations are,therefore, simply testing cloud computing selectively in isolated functionalareas. Based on Gartner’s estimates, less than 5 percent of the average ITbudget for insurers is allocated to cloud computing today.”6 Triggers for anincreased cloud spend include:7• Insurers are focusing on internal private clouds for the immediate benefits that virtualization brings but also to prepare for the future use of public clouds.• Carriers need to upgrade their modeling capabilities to deal with vast data volumes, and they must meet new regulatory requirements that require huge computing power at infrequent intervals (i.e., reporting deadlines).• Many insurance companies are shackled with disparate legacy systems across multiple products and lines of business. These carriers are growing impatient with stale technology and are looking to stay up to date.• High-visibility products like telematics are placing pressure on insurance companies to move into the cloud faster. Top executives are asking CIOs to move rapidly. 7
  • 8. 8
  • 9. Core transaction processing in the cloudInsurance carriers have plenty of experience could do the work better than anyone That barrier has been removed bywith niche cloud vendors providing specific else. They haven’t been interested in companies like Salesforce.com andslices of functionality. For example, insurers having their ‘secret sauce’ at risk of Microsoft Dynamics.8 The highlyhave been using cloud auto-estimating open consumption in the public cloud. configurable solutions provided by thesepackages for over a decade, and have used companies demonstrate that it is possiblemedical bill processing cloud solutions for The immaturity of the technology has to tailor offerings without customizing the10 to 15 years. been another barrier to cloud adoption for cloud software or losing scale. insurance companies. Early adopters ofLikewise, carriers are also accustomed cloud transaction processing discovered We are seeing a profound change asto outsourcing key business capabilities, that the solutions were too rigid, with insurance companies start to trustleveraging the Internet to exchange hard-coded rules and few options. established cloud providers to secureinformation with their providers. This their data. The result? Core transactiontrend has been picking up speed recently, Insurance carriers balked at changing processing is migrating to the cloud; asas carriers outsource key business their business requirements to match the it does, speed-to-market for these cloudfunctions and applications such as salvage, capabilities of the software. The cloud adopters has increased. In the cloud, ansubrogation, and first notice of loss (FNOL). vendors in this space could not scale their application like FNOL can be brought to applications due to demands for one- market in four months rather than 18Transaction processing systems, however, off changes from individual carriers. The to 24. With that type of differential inare another matter entirely. These resulting friction created the impression speed to market, products developed insystems are core to the current business that cloud software could not meet the traditional way are out of the runningmodel, and carriers have long resisted insurers’ needs. before they leave the drawing board.outsourcing them, claiming that theyMultichannel consumer outreachEvery carrier is trying to figure out how to In addition, carriers recognize thedo a better job of servicing its customers opportunity that social media presentsand allowing them to carry out their to target customers with dedicatedinsurance business on their own terms, offers for insurance. A simple example:anywhere and anytime. To do that, these if a customer announces travel planscompanies know they must follow in the on Facebook or Twitter, an insurer canfootsteps of their retail industry colleagues, immediately offer him or her appropriatejettisoning their front-end legacy systems travel insurance products.which are woefully slow and inefficient.The multi-channel solutions on the drawingboard are invariably cloud solutions.Carriers are starting to design socialplatforms and communities as vehicles forcreating value, segmenting consumers, andgathering ideas from open innovation withthe public. 9
  • 10. Cloud computing: A quick primerCloud computing is a model for providing and sourcinginformation technology services on a “pay-per-use”basis through web-based tools and applications.Cloud services are elastic – allowing them to be highlyconfigurable, adaptable, and scalable – and require lessup-front investment and ongoing operating expenditurethan traditional IT models.Clouds generally take one of four All of these cloud deployment models • At the business process level, clouddeployment models (or a combination of can provide computing “on demand” at computing–based solutions–known asthese models): private, public, hybrid, one or more of these four levels of BPaaS offer a web-enabled, externallyand community. service delivery: provisioned services for managing business processes. These solutions differ • At the infrastructure level, companiesPrivate use infrastructure-as-a-service, or IaaS, from application clouds in that they provide end-to-end process support,Private clouds are dedicated to a single offerings to source raw computing covering not just software but alsocompany for private use and can either resources, processing power, network people processes such as contact centers.be built within a company’s premises bandwidth, and storage on an on-or located off-premise. They are owned demand basis. IaaS is the most basicand provided by an external third cloud service model.party, to deliver virtualized application, • At the platform level, platform-as-a-infrastructure, and communications service, or PaaS, is a software platformservices for internal business users. including infrastructure elements such as database, middleware, messaging,Public security, development tools, and aPublic clouds are accessible to the public presentation layer that are used toover a network and fully owned and develop custom applications. It providesprovided by external third parties. companies with an environment that supports rapid evolution of the softwareCommunity development lifecycle where there is a need for continuous change.Community clouds are collaborativeresources shared between a limited number • At the application level, generally knownof selected organizations with common as software-as-a-service, or SaaS,interests – perhaps in the same industry a complete software application isor geographical region – with the costs delivered to the end-user. It encompassesspread across the users. Community clouds and applications and associated datacan be hosted internally or by external third that are hosted on the cloud andparties as a managed service. accessed via web browsers, supporting device independence and anywhereHybrid access. In some business areas, including customer relationship management,Hybrid clouds are a combination of two companies such as Salesforce.com haveor more private, public, or community achieved widespread take-up acrossclouds. Companies utilize hybrid cloud many industries.solutions to blend the benefits of differentcloud models, enabling them to retainconfidential information in a private cloudor community cloud, while providing accessto the wider variety of cloud computingservices available in public clouds.10
  • 11. 11
  • 12. The shape of insurance cloudsto comeThe convergence of cloud, mobility, and advanced analytics on big datawill drive transformation among carriers. Insurance has been a no-growthindustry in which companies expand chiefly by gaining market share from acompetitor. However, new services and products are proliferating, with littlelimit in sight other than carriers’ creativity and their ability toforge partnerships.Others have their eyes on these opportunities as well. The banking industryis seeing threats from non-banking entrants such as telecommunicationscompanies and Google – for example, mobile financial services in developingeconomies, and applications such as Google Wallet and Google Finance. Thesame threats have started appearing in the insurance industry. The cloud’scombination of low cost, high scalability, effectively unlimited processingpower and storage, and variable pay-per-use cost structures will make it fareasier for competitors to challenge the large insurance carriers’ dominance.In our view, there will be three key trends in carriers’ use of cloud computingthat will drive them through the levels of the cloud maturity model.12
  • 13. Trend 1Real-time data collection from multiple sources willbecome core to carriers’ business and a primary sourceof innovation. Instead of relying on historical data, as sensors and home automation technology they have done in the past, carriers will to help people remain in their familiar use a constant flow of big data (external surroundings is also cost-effective. and potentially unstructured) to determine risk. As a result, their risk assessments will Differentiated approaches lead to value- become more accurate and they will be able based benefits. In addition to covering to offer better pricing contracts for lower- care for a customer illness or accident, risk customers. Indeed, pricing by segment, San Francisco–based SeeChange Health group, or location will sink into ancient offers cash rewards or lower out-of-pocket history as the cloud’s computing power costs to patients who complete specific helps make personalized pricing possible. action plans. Using data from personal health records, claims databases, lab The costs associated with risk management feeds and pharmacies, this health insurer and ongoing risk assessments will also identifies patients with chronic illness drop. Factory sensors can provide real- who could benefit from customizedExploiting customer data has time data at little cost to the insurance compliance programs.9 carrier – a far more attractive propositionlong been insurance carriers’ than sending an inspector to manually andcore business. Now telematics laboriously gather specific information orhas opened the door to carriers’ measure operating conditions.collecting data from a variety Of course, customers will not inviteof sources and insurable assets insurance carriers into their cars, homes,beyond cars – such as plant and and places of business without an exchange of value. To gain access to real-warehouse sensors recording time data, insurance companies will needtemperature and humidity for to offer new services to both corporate andcommercial lines’ P&C carriers, individual customers.or home data sensors for house In the factory scenario, a carrier couldinsurance carriers. The analysis offer to maintain the equipment fromof this real-time data will shift which they gather sensor data and to lower insurance premiums as an incentive tohow carriers segment customers bundle the services. Likewise, an insuranceand rate and underwrite policies, company could partner with a homemoving the need for such nursing service to monitor patients atinformation from non-core to home. For the patients, sleeping in their own beds would be priceless, and usingmission-critical for carriers. 13
  • 14. Trend 2Carriers will increasingly leverage the full cloud stack togain agility and enable a test-and-learn culture. Witness Accenture’s agreement with a constellations of products and services, leading U.S. property and casualty carrier adopting the role of gateway and main to handle the several million automobile contact for a host of related services. claims the carrier processes each year. This To do so, they will bring different highly configurable cloud solution enables parts of processes together, melding efficient and accurate claims reporting, internal capabilities (e.g., pricing and risk making it easier for the carrier to build management) with external offerings customer satisfaction and loyalty. from partners. Insurance carriers will also look to We are already seeing insurance companies move the cloud stack of services from team with local security companies to infrastructure-as-a-service (IaaS) to cover properties, and with mortgage firms platform-as-a-service (PaaS) and down to handle the financing of real estate (using the cloud stack of services from software- their own calculation engines to get quotes as-a-service (SaaS) to platform-as-a- from different services).As in many industries, carriers service (PaaS), as well as up the stack from software-as-a-service (SaaS) to business- United Services Automobile Associationthat have experimented with process-as-aservice (BPaaS). (see Figure 1 (USAA) is moving in this direction, forcloud solutions have focused on for an FNOL example). This evolution, which example, with its mobile end-to-endSaaS. Productivity tools are a we predict will occur in the next few years, content approach. Its new ecosystem will allow insurance companies to plug provides applications that encompass agood example, though insurance wide range of consumer needs. An Auto in new channels, new devices, and newcarriers are also taking advantage business partners, as well as consume and Circle app helps users find a car, obtain aof the variable capacity and retrieve structured and unstructured data. loan with a dedicated deal and renew their car insurance policy, for example. And the“pay per-drink” costs of With PaaS, carriers are able to act and Home Circle app allows users to search forSaaS for claims management react quickly, which fosters a culture of properties, arrange insurance protection,support applications. iteration and experimentation. They will find home financing and receive gain a new level of agility that lowers notifications when payments are received.10 innovation barriers and overcomes long- time IT challenges such as rigid application PaaS providers are ready for insurers development, provisioning, and deployment. to make this move, and have enhanced data options on various platforms. Google By moving up the cloud stack (from IaaS to now offers Google Cloud SQL on top of PaaS and from SaaS to BPaaS), carriers will its NoSQL database, Google BigTable, to do what they do now, just more effectively. use with the Google App Engine.11 For example, when a natural disaster Microsoft is piloting Hadoop – an open occurs, carriers will be able to rapidly scale source big data software framework – on up back-end claims processing in the cloud Azure, the Microsoft cloud, as well as on to handle demand and process claims in Microsoft servers.12 the field via a mobile workforce. In addition, they will have the technological firepower and infrastructure to leverage the real-time data they gather. On that foundation, they will build entirely new14
  • 15. Figure 1: Leveraging the full cloud stack: FNOL example Business-Process-as-a-service (BPaaS) The entire FNOL business process is offered to the insurance company as a service, potentially as a seamless integration of multiple third-party cloud services that are consumed by the BPaaS provider. The goal is to rapidly assemble business processes in a way that is, once again, transparent to users. BPaaS allows carriers to create a network of partners in which the insurance carrier is at the center of the customer relationship. Software-as-a-service (SaaS) An FNOL application on a mobile phone uses the same services as a PC browser–based application. Each application has its own design but uses the same services to send FNOL data to back-end processing. SaaS solutions provide speed to market, variable costs based on usage, improved service levels, and less risk. Platform-as-a-service (PaaS) The insurance company uses a PaaS platform to speed up and enhance the value derived from custom development, which is used to build custom applications (either applications used to support other business processes or full-blown SaaS applications). Infrastructure-as-a-service (IaaS) Raw computing capacity is sourced from IaaS providers on demand to provide cost-effective and flexible infrastructure to support custom applications for the insurance company. 15
  • 16. Trend 3Customers will be encouraged to engage more deeplywith their insurance company as the public image ofinsurance carriers shifts. Insurance companies have done little to Social platforms will foster intimacy and counter these consumer attitudes. Product- trust with consumers. Take the Click for centricity, not customer-centricity, has Kids campaign from Northwestern Mutual driven the business of many carriers to Life Insurance and Financial Services. On date, particularly in property and casualty. YouTube, customers can view videos from To many carriers, “customer” is actually organizations such as Action for Healthy considered an attribute of “product.” The Kids, Teach for America and Easter Seals.15 ability to understand details across an Health insurers are turning to mobile actual relationship with a real human being apps, social games, and Twitter feeds to is not possible. Nor have carriers developed communicate health tips, help children or adopted the kinds of self-service learn good eating habits, encourage technologies that have revolutionized exercise, and support other aspects of areas such as the airline industry.14 preventative care.16 This perception will change as customers What better way to build a new relationshipCustomers view insurance as a turn to insurance companies as trusted than to let customers adopt traditional service providers capable of lifting tedious insurance carrier roles?tax, as something they do not tasks (e.g., finding a good real estate dealwant but must pay for – many or getting the best car loan) off their Friendsurance, a Germany-based insurancetimes, a bitter pill to swallow. shoulders and as aggregators of newcomer, is doing just that. The carrier related processes. lets customers manage their own insuranceThey see insurance companies claims. Customers create communities ofas single-dimensional, offering As this transformation occurs, customers up to 15 people who agree to provide anarrow sets of services. Less will adopt active roles that help insurers small amount of money in the case of an perform more effectively (and reduce the accident. Friendsurance pays the rest. Valuethan a third of insurance work involved in data collection). for the consumer: premiums 50 percentcustomers describe themselves lower than average. Value for the carrier:as loyal, satisfied, or willing to For example, a person involved in a car fewer small claims to process and less accident will use a mobile app to take claims fraud.17recommend their provider to pictures, draw a sketch of the accidentothers, according to Accenture’s scene and send this information to his or2011 study of consumer behavior her insurance company. A homeowner will create a photographic log of belongingsin the life insurance industry.13 and send it to the insurance company, which will store and process this unstructured data and update the owner’s profile.16
  • 17. Cloud maturity model for theinsurance industryAs insurers’ use of the cloud grows, beginning to draw on cloud’s unique attributes asa source of competitive advantage. Accenture has devised a cloud maturity model (seefigure 2) to help insurance executives pinpoint their company’s stage in the journey,assess the upcoming opportunities, and plan their best next steps.18The model divides the journey to cloud maturity into three phases starting withcommodity IT, such as email and storage; then stepping up to functional applications suchas business intelligence (BI), FNOL, subrogation and salvage; and finally progressing tocore business applications in the cloud, such as policy management, claims and billing.At the same time, the insurer’s objectives in using cloud also mature, progressing froma focus on costs to ad hoc strategic enablement, before finally making cloud an integralpart of the business strategy.Clearly, different insurers will move into the cloud at their own pace, reflecting the uniquecharacteristics of their business and the competitive environment they face. However, ourindustry experience and insights indicate that the industry’s higher performers are:• Realizing all the available value from level 1• Proactively and systematically exploring opportunities at level 2• Preparing for level 3 as the cloud matures – and as the depth and scope of the cloud ecosystem increases.Figure 2 Product centric Customer centric Core business applications Extent to which cloud is • Policy, billing, claims management a source of competitive • Sales & distribution advantage 3 • Supply chain integration • Value added services (Household driver tracking) 2 Functional applications • Rating in the cloud • BI and reporting • Subro, salvage, FNOL, • Agency licensing • External underwriting info (e.g., motor vehicle records) Commodity IT • Storage and compute • Email 1 • Collaboration tools Reduce IT TCO and Ad-hoc strategic Integral part of capex enabler strategy development and execution Reduced Improved U/W Reduced and New value-added infrastructure results via transparent services (risk cost; increased more/better transaction cost management, scalability external data driver telematics) 17
  • 18. Stepping into your future in the cloudWhere to start? As an insurance carrier, you canprepare for what’s coming by taking these five steps.1. Redraw the line between core 3. Create a data supply chain. 5. Build or acquire high-octaneand non-core. Data sources are ballooning – through data security.Set aside long-held assumptions regarding increased merger and acquisition (M&A) The cloud is creating a wealth of newwhat you do as your core business. For activities and new sources of collaboration business opportunities for insuranceexample, analytics is at the core of what such as social media, digital marketing, companies. But new security risks comeyou do — and the cloud offers new ways to gaming, telematics, and blogs. Business with the opportunities. Cyber-attackersbolster those capabilities (e.g., using neural units all over your enterprise will be are becoming more sophisticated. And innetworks to identify high-value customers creating, consuming, and sharing data mobile transactions, insurers have littleat risk of switching carriers or spotting with each other, making it important control over devices and the applicationsfraudulent insurance claims).19 What about to focus on data responsibility instead of and operating systems that reside on them.the idea of offering analytics-as-a-service data ownership.to insurance carriers in other market areas Data security is an agenda item for the This shift has created a data supply chain, C-suite. You should turn to data platformor to other industries (e.g., nuclear power and it is the CIO’s responsibility to work technologies and analytics for securityplants)? Too far-fetched? Time will tell. with business units to coordinate data management. The data platform canLook for constellations of valuable responsibility from creation to distribution. provide security capabilities to handlecontext-based services to offer, with your Data services need to be industrialized to large volumes of fast-changing data.company as the gatekeeper and the visible eliminate redundant solutions and drive It can help suppress insider threats bypartner with the customer. Offering a data management efficiency. You will analyzing data about comparative networkset of services associated with renting or need to create data platforms that break usage patterns to see whether a suspectbuying real estate is one of many possible down the silos and hide the underlying employee’s time spent downloadingexamples. Outreach to customers through complexity of storage and access. You also reports is out of the ordinary. Thesocial platforms may uncover many more. need to learn how to place a value on data platform might compare data packets; by understanding the supply and demand the same packets going to different for it across the company.202. Lock in business process hosts could indicate that information is being echoed to a snooping threat.21constellations of partners. 4. Look beyond the cost play ofHowever you redraw the circle around cloud.your core business, you are unlikely toencompass all the capabilities you need to The first steps into the cloud are almostoffer end-to-end coverage of processes always about reducing costs. However,such as renting real estate. You will need to you should look to leverage the cloud toexpand your partnership circle to include simplify your core architecture and createcompanies with which you have never had business agility as well. You need to builda reason to build a relationship before. a test-and-learn culture that will provide fertile ground for innovation as you prepare to move up the cloud stack from IaaS to PaaS and from SaaS to BPaaS (or equally if you move down the stack from SaaS to PaaS for greater flexibility).18
  • 19. A perception shiftInsurance carriers now have the At the same time, carriers can regainopportunity to change their reputation customers’ trust by putting thefrom bitter-but-necessary medicine customer – end customers as well asto value creator. By reinventing their enterprise customers – at the center ofbusiness model to provide a new set their products and services. As cloudof products and services, fueled by computing, mobility, and analyticsreal-time data flows, carriers can advances continue, the time to createsidestep clear threats on the horizon. an executable cloud strategy is now. 19
  • 20. References For more information About Accenture1 See www.progressive.com/auto/snapshot. To find out more about how Accenture can Accenture is a global management consulting, aspx. help your company harness the power of the technology services and outsourcing company, cloud to achieve and sustain high performance, with 257,000 people serving clients in more than2 Accenture, “Accenture Technology Vision please contact: 120 countries. Combining unparalleled experience, 2012,” 2012. comprehensive capabilities across all industries3 Insurance Networking News, “Surging Interest Michael Jackowski and business functions, and extensive research on in Pay As/How You Drive,” February 16, 2012. michael.a.jackowski@accenture.com the world’s most successful companies, Accenture collaborates with clients to help them become4 Gartner, “Hype Cycle for P&C Insurance, 2012,” Mike Jackowski is responsible for the overall high-performance businesses and governments. 2012. business results, strategy, and execution of The company generated net revenues of US$27.95 Gartner, “Hype Cycle for P&C Insurance, 2012,” Accenture’s Global Property and Casualty billion for the fiscal year ended Aug. 31, 2012. Its 2012. Software Business. He led the creation of and home page is www.accenture.com.6 Gartner, “A Quick Look at Cloud Computing in continues to lead the ongoing innovation of the Insurance Industry,” March 6, 2012. Accenture’s pioneering software product, Claim Components. Mike has 18 years of insurance7 Gartner, “A Quick Look at Cloud Computing in industry experience, specializing in the use of the Insurance Industry,” March 6, 2012. technology to drive business value for P&C8 See www.salesforce.com/; or www.microsoft. carriers. Prior to Accenture, he held several roles com/en-us/dynamics/default.aspx. at a major insurance carrier.9 MedCity News, “5 Companies Using Big Data Emmanuel Viale to Solve Healthcare Problems,“ November 29, emmanuel.viale@accenture.com 2011, in Accenture, “Accenture Technology Vision 2012,” 2012. Emmanuel Viale is a Director of the Accenture10 See www.usaa.com/inet/pages/auto_event_ Technology Labs, based in the Sophia Antipolis product_main?wa_ref=ac_redirect, and Lab in France. He specializes in identifying and www.usaa.com/inet/pages/mobile_property_ delivering applications of innovative technologies event for our financial services clients.11 See developers.google.com/cloud-sql/.12 Forbes, “Microsoft Does Big Data — Hadoop on Windows,” June 5, 2012.13 Accenture, “2011 Global Consumer Behavior Study,” January 2012.14 Accenture, “Four New Year’s Resolutions for Property & Casualty Insurers,” 2012.15 See www.youtube.com/view_play_ list?p=CA8CAEE47FFE04AF.16 See, for example, Ken Terry, “Health Insurers Ramp Up Social Media, mHealth apps.” Information Week Healthcare, August 23, 2012.17 Springwise.com, www.springwise.com/ financial_services/friendsurance/ in Accenture, “Accenture Technology Vision 2012,” 2012.18 Accenture research.19 McKinsey Global Institute, “Big Data: The Next Frontier for Innovation, Competition, and Productivity,” May 2011.20 Accenture, “Accenture Technology Vision 2012,” 2012.21 Accenture, “Accenture Technology Vision 2012,” 2012.Copyright © 2012 AccentureAll rights reserved. 12-3811 / 02-5707Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.

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