Microservices architecture enables the building of new capabilities to meet these needs. The graphic below contrasts the anatomy of a traditional “pre-digital age” monolith insurance app and a “digital age” innovative microservices-based insured app.
Microservices are becoming more and more popular. Big players such as Amazon, Netflix, Spotify, as well as small and medium-sized enterprises are developing Microservices-based systems. Microservices are autonomous services deployed independently, with a single and clearly defined purpose.
2. INTRODUCTION
According to a recent survey on insurance technologies, about 90% of the responders said that
in the next five years customers will be looking for insurance through online or mobile apps.
Insurance companies are slowly trying to move towards digital transformation and smart
technology systems. If they wish to catch up with today’s technology, they have to digitize and
that too at a faster pace.
The traditional insurance value chain and subsequently the customer experience over the last
20+ years has operated across a number of functional silos. Each of these silos has unique
characteristics and are organized around their own KPIs.
3. Underwriting/risk
management is primarily
focused on risk assessment,
underwriting quality and
booking of premiums.
Claims are focused on claims
management, fraud
detection, leakage reduction
and processing turnaround
time.
Typically, each of these
functions operates
independently with limited
organizational integration.
4. It’s Time to Accelerate Digital Change
Today’s insurance landscape
demands agility to adapt with
ease, innovation to reimagine
the possibilities, and speed to
capture the opportunities. The
digital age demands so much
more to stay relevant and
competitive.
Customer
Experience is the
Differentiator
Insurance
Value
Chain
Disrupted
Rise of
Ecosystems
and the
Platform
Economy
5. A New System Paradigm for the Digital Age
A common theme is emerging that highlights the
need for a new set of capabilities to support the
paradigm shift. To succeed, let alone survive,
insurers will need to proactively respond to the
value chain disruption, elevated customer
expectations and the rise of the ecosystem and
platform economy by using granular (Single
Responsibility Principle) API / Microservices to
build an on-demand business solution with
loosely coupled microservices and find-n-bind
capabilities that can leverage any ecosystem.
Source- Majesco
6. FUELLING INNOVATION THROUGH
MICROSERVICE ARCHITECTURE
Microservices architecture enables the building of new capabilities to meet these needs. The
graphic below contrasts the anatomy of a traditional “pre-digital age” monolith insurance app
and a “digital age” innovative microservices-based insured app.
Microservices propose vertically
decomposing applications into a
subset of business-driven independent
services.
Each service can be developed,
deployed, and tested independently by
different development teams and
using different technology stacks.
Microservices have a variety of
different advantages.
They can be developed
in different
programming
languages, can scale
independently from
other services, and can
be deployed on the
hardware that best
suits their needs.
8. Monolithic enterprise platforms emerged in insurance to meet the demand for comprehensive functionality
covering the entire policy lifecycle and all related activities. However, companies became trapped in these elaborate
walled gardens while the world outside was changing rapidly. In a monolithic environment, taking advantage of new
capabilities requires you to go back to your vendor or bring in specific programming expertise for a costly and
disruptive long-term project.
Source- Majesco
9. How can insurance companies successfully break out from
restrictive monolithic systems without disrupting their core
business functions?
Migrate at Your Own Pace
• Instead of having to build or buy an entire system that must meet the needs of all stakeholders (a substantial
risk either way), you can gradually begin utilizing web-enabled insurance microservices to add or improve
functionality. The ability to make a phased migration from your existing platform to microservices architecture
is advantageous, compared to a sudden, complete transition from one enterprise system to another.
Collaborate with Best-of-Breed Vendors for Each Microservice
• Microservices enable a more collaborative approach to development. You can choose which aspects of
the system to build in-house and when to pick a vendor for things you don’t have the skills or budget to
develop internally.
Make Your Internal IT Team More Agile
• Breaking out specific pieces of functionality is difficult or impossible in a monolithic platform. To make
changes to one component, you typically have to update the entire system, which requires working with
the vendor, and investing extra time and money. In a microservices environment, it’s easy to update or
replace any component, any time.
10. Road Ahead!
The flexibility of microservices architecture
creates opportunities for your internal IT team
to learn, grow, and adapt as InsurTech
evolves.
It will enable new business models, new
products, refined customer experiences, and
timely responses to new business needs
The shift from the monolith to microservices is
part of a broader trend toward distributed
computing over the internet.
Software as a Service has become the new
normal, and web-enabled microservices are
the natural next step in InsurTech
development.
It’s time to break free of the monolith. Ask
us how ARTIVATIC can help you start taking
advantage of insurance microservices.