This document discusses how insurance companies can digitize their legacy systems to adopt modern technologies. It defines digitalization as shifting to electronic channels while balancing traditional practices. Insurers must modernize to drive growth amid rising customer expectations. Technical challenges include outdated, siloed legacy systems that are difficult to integrate and scale. The document recommends insurers establish a digital center of excellence, consult digital partners, assess technologies and identify gaps, target areas and users, and develop strategic IT initiatives to orchestrate their digital transformation.
Digitizing Insurance - Transforming Legacy Systems to Adopt Modern and Emergi...RapidValue
This paper explains how insurers can use the digitization (digitalization) opportunity to deliver greater value to their customers. It is also, revealed how the companies can gain competitive advantage. Insurers are able to engage more intensely with the existing customers and also, attract newer customers with the help of innovative products. Digitizing improves profitability and facilitates growth.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
Scaling Up Smart Meter Operations: Challenges and the Way Forward for UK Ener...Cognizant
With smart meters being implemented at a rapid pace, energy utilities need to be prepared to make the best use of this opportunity. Here's a guide to possible shortfalls in the journey, and to the technical, operational and organizational capabilities utilities need to thrive in the digital smart metering era.
Equipping IT to Deliver Faster, More Flexible Service ManagementCognizant
IT must apply new strategies and tools to the service management function, in order to address fundamental changes in how end-users consume technology and services. Here's how IT can increase service delivery speeds and user satisfaction, while delivering greater business value.
How Insurers Bring Focus to Digital Initiatives through a Maturity Looking GlassCognizant
When planning a digital initiative, it’s critical to understand where your company stands today and how it can get to where it needs to go. A new framework lets insurers assess their digital maturity, identify how best to move ahead, and gain insight into the practices of industry digital leaders to guide their own efforts.
Modernizing the Insurance Value Chain: Top Three Digital ImperativesCognizant
As nontraditional companies enter the insurance scene and insurtechs launch novel products, incumbents need to accelerate innovation and differentiate the customer journey to remain in the game. Here are three strategies to achieve these goals, with a brief look at a few companies well on their way.
By delving deeply into customer experience, business process design and operating model change, organizations can more effectively move from 'doing' digital to 'being’ digital.
Digitizing Insurance - Transforming Legacy Systems to Adopt Modern and Emergi...RapidValue
This paper explains how insurers can use the digitization (digitalization) opportunity to deliver greater value to their customers. It is also, revealed how the companies can gain competitive advantage. Insurers are able to engage more intensely with the existing customers and also, attract newer customers with the help of innovative products. Digitizing improves profitability and facilitates growth.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
Scaling Up Smart Meter Operations: Challenges and the Way Forward for UK Ener...Cognizant
With smart meters being implemented at a rapid pace, energy utilities need to be prepared to make the best use of this opportunity. Here's a guide to possible shortfalls in the journey, and to the technical, operational and organizational capabilities utilities need to thrive in the digital smart metering era.
Equipping IT to Deliver Faster, More Flexible Service ManagementCognizant
IT must apply new strategies and tools to the service management function, in order to address fundamental changes in how end-users consume technology and services. Here's how IT can increase service delivery speeds and user satisfaction, while delivering greater business value.
How Insurers Bring Focus to Digital Initiatives through a Maturity Looking GlassCognizant
When planning a digital initiative, it’s critical to understand where your company stands today and how it can get to where it needs to go. A new framework lets insurers assess their digital maturity, identify how best to move ahead, and gain insight into the practices of industry digital leaders to guide their own efforts.
Modernizing the Insurance Value Chain: Top Three Digital ImperativesCognizant
As nontraditional companies enter the insurance scene and insurtechs launch novel products, incumbents need to accelerate innovation and differentiate the customer journey to remain in the game. Here are three strategies to achieve these goals, with a brief look at a few companies well on their way.
By delving deeply into customer experience, business process design and operating model change, organizations can more effectively move from 'doing' digital to 'being’ digital.
Emerging Trends in Automated Wealth Management AdviceCognizant
As robo advisors expand into more customer segments, European wealth managers need to respond to changing dynamics to stay ahead of emerging providers.
Going Digital? Not Without a Simple, Modern and Secure IT BackboneCognizant
To compete in today’s digital world, enterprises need a fast, efficient and extensible IT foundation that reduces complexity, enhances agility and enables resiliency. Here’s our blueprint on how to get started.
Reinforce the insurance value chain with predictive modelling and mlIndusNetMarketing
This ebook expands your knowledge of the insurance value chain and provides with end to end solution to elevate the customer experience through advanced technologies:
AI optimising marketing and distribution
Automating underwriting process by Machine learning model
Predictive analytics powered by AI to speed up claiming process
Insurance rating software is defined as an integrated software to handle the needs of insurers of all sizes. It is used to calculate the premium associated with a policy or other transactions. It stores the rating rules and algorithms, the base rates and associated factors, and the rules necessary to combine the rates and algorithms to calculate a premium.
Insurance at the Intersection: Reinventing the Model, Repositioning the BrandCognizant
Insurers that can embrace the changing environment by redesigning their operating models and reinventing their business will be the most successful industry players of the future.
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Driving Value Through Data Analytics: The Path from Raw Data to Informational...Cognizant
As organizations gather and process colossal amounts of data, analytics is essential for operational and strategic excellence. We offer a guide to the phases of the data analytics journey, from descriptive to diagnostic to predictive to prescriptive, covering intentions, tools and people considerations.
North American Utility Sparks Up its Complaint Handling SystemCognizant
Electric utility's new complaint handling system reduces resolution times, increases staff productivity, boosts customer satisfaction and improves regulatory compliance.
Understanding the Information Architecture, Data Management, and Analysis Cha...Cognizant
As the Internet of Things (IoT) becomes increasingly prevalent, organizations must build the enterprise information architecture required to gather, manage, and analyze vast troves of rich real-time data. We offer an IoT framework, use cases, and a maturity model that helps enable you to choose an adoption approach.
Magenta advisory: Data Driven Decision Making –Is Your Organization Ready Fo...BearingPoint Finland
It’s nice to have loads of data. Nevertheless, many managers start to sweat when it comes to genuinely fact-based decision making. This study reveals the keys to leveraging big data successfully.
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term due largely to the rapid innovation that the Internet of Things is driving throughout the economy. Yet, in the midst of this disruption there is opportunity. Insurers will need to dramatically reshape their business model, combining insurance with technology, ecosystem services and partners.
Reshaping Underwriting Landscape With Focussing On CX – WhitepaperIndusNetMarketing
80% of customers lost interest in buying life insurance due to the poor underwriting process. These top 3 strategic solutions are imperative to enhance CX.
Digitization affects almost everything in today's organizations, which makes capturing its benefits uniquely complex. However
1. Getting the engine in place to digitize at scale is uniquely complex as digital touches so many parts of an organization requiring unprecedented coordination of
People,
Processes, and
Technologies.
2. A strategy to increase revenue which generates the most value requires
A clear vision and plan for how to capture that value, and
Technologies and tools to digitize interactions with customers.
New capabilities and teams to manage and coordinate the delivery of those journeys across the organization.
3. With the average corporate life span falling for more than half a century(Standard & Poor’s data show it was 61 years in 1958, 25 years in 1980, and just 18 years in 2011) digitization is placing unprecedented pressure on organizations to evolve. That means digitally driven business model is crucial to survival.
Emerging Trends in Automated Wealth Management AdviceCognizant
As robo advisors expand into more customer segments, European wealth managers need to respond to changing dynamics to stay ahead of emerging providers.
Going Digital? Not Without a Simple, Modern and Secure IT BackboneCognizant
To compete in today’s digital world, enterprises need a fast, efficient and extensible IT foundation that reduces complexity, enhances agility and enables resiliency. Here’s our blueprint on how to get started.
Reinforce the insurance value chain with predictive modelling and mlIndusNetMarketing
This ebook expands your knowledge of the insurance value chain and provides with end to end solution to elevate the customer experience through advanced technologies:
AI optimising marketing and distribution
Automating underwriting process by Machine learning model
Predictive analytics powered by AI to speed up claiming process
Insurance rating software is defined as an integrated software to handle the needs of insurers of all sizes. It is used to calculate the premium associated with a policy or other transactions. It stores the rating rules and algorithms, the base rates and associated factors, and the rules necessary to combine the rates and algorithms to calculate a premium.
Insurance at the Intersection: Reinventing the Model, Repositioning the BrandCognizant
Insurers that can embrace the changing environment by redesigning their operating models and reinventing their business will be the most successful industry players of the future.
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Driving Value Through Data Analytics: The Path from Raw Data to Informational...Cognizant
As organizations gather and process colossal amounts of data, analytics is essential for operational and strategic excellence. We offer a guide to the phases of the data analytics journey, from descriptive to diagnostic to predictive to prescriptive, covering intentions, tools and people considerations.
North American Utility Sparks Up its Complaint Handling SystemCognizant
Electric utility's new complaint handling system reduces resolution times, increases staff productivity, boosts customer satisfaction and improves regulatory compliance.
Understanding the Information Architecture, Data Management, and Analysis Cha...Cognizant
As the Internet of Things (IoT) becomes increasingly prevalent, organizations must build the enterprise information architecture required to gather, manage, and analyze vast troves of rich real-time data. We offer an IoT framework, use cases, and a maturity model that helps enable you to choose an adoption approach.
Magenta advisory: Data Driven Decision Making –Is Your Organization Ready Fo...BearingPoint Finland
It’s nice to have loads of data. Nevertheless, many managers start to sweat when it comes to genuinely fact-based decision making. This study reveals the keys to leveraging big data successfully.
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term due largely to the rapid innovation that the Internet of Things is driving throughout the economy. Yet, in the midst of this disruption there is opportunity. Insurers will need to dramatically reshape their business model, combining insurance with technology, ecosystem services and partners.
Reshaping Underwriting Landscape With Focussing On CX – WhitepaperIndusNetMarketing
80% of customers lost interest in buying life insurance due to the poor underwriting process. These top 3 strategic solutions are imperative to enhance CX.
Digitization affects almost everything in today's organizations, which makes capturing its benefits uniquely complex. However
1. Getting the engine in place to digitize at scale is uniquely complex as digital touches so many parts of an organization requiring unprecedented coordination of
People,
Processes, and
Technologies.
2. A strategy to increase revenue which generates the most value requires
A clear vision and plan for how to capture that value, and
Technologies and tools to digitize interactions with customers.
New capabilities and teams to manage and coordinate the delivery of those journeys across the organization.
3. With the average corporate life span falling for more than half a century(Standard & Poor’s data show it was 61 years in 1958, 25 years in 1980, and just 18 years in 2011) digitization is placing unprecedented pressure on organizations to evolve. That means digitally driven business model is crucial to survival.
How Insurers Can Tame Data to Drive InnovationCognizant
To thrive among entrenched rivals and compete more effectively with digital natives, insurers will need to get their data right. That will mean moving to more responsive, AI-enabled architectures that accelerate data management and deliver insights that drive business performance.
Modernizing Insurance Data to Drive Intelligent DecisionsCognizant
To thrive during a period of unprecedented volatility, insurers will need to leverage artificial intelligence to make faster and better business decisions - and do so at scale. For many insurers, achieving what we call "intelligent decisioning" will require them to modernize their data foundation to draw actionable insights from a wide variety of both traditional and new sources, such as wearables, auto telematics, building sensors and the evolving third-party data landscape.
Cloud Enabled Transformation In InsuranceCapgemini
Immature capabilities and growing market disruptors are compelling insurers to act swiftly and become fully customer centric. According to the World Insurance Report 2015 less than 30% of customers are having positive customer experiences globally forcing Insurers to reinvent their ability to deliver positive customer experience across the entire customer journey.
Capgemini's ACEs (All Channel Experience) for Insurance is built on Salesforce the leading CRM platform to help insurers improve their core capabilities and enrich customer experiences regardless of customer channel or device preferences.
Find out how Cloud-Enabled Transformation in Insurance from Capgemini and Salesforce is a faster and less disruptive way for insurers to rapidly evolve digital capabilities to achieve customer experiences that leave your customers wanting more!
Reincarnating traditional infrastructure outsourcingNIIT Technologies
Ever since Traditional Outsourcing has gone almost extinct, enterprises are focusing on investing more in next-generation service providers that can provide them flexibility and agility to match the ever changing dynamics of business. This paper highlights how and why traditional infrastructure outsourcing market is shrinking dramatically. It also explains how the new age vendors can adapt to new technology to provide benefits to Gen 2.0 clients.
Stand on the Sidelines, or Boost Competitiveness? How to Make Bold Moves on t...Accenture Insurance
Sweeping changes across consumer behavior, technology innovations and big data are reshaping traditional insurance business models and what it takes to compete. The most successful insurers are the ones that will proactively adapt their game plan to the evolving environment and rules of competition. This piece explores three strategies to better position insurers for the future.
Transforming The Insurance Industry How Liferay DXP Is Revolutionizing Digita...arenakelly
Learn how the Liferay Digital Experience Platform help insurers deliver personalized experiences, streamline operations, and optimize workflows to transform businesses
Similar to Digitizing Insurance - A Whitepaper by RapidValue Solutions (20)
2. Table of Contents
Executive Summary................................................................................................................
Definition of Digitalization in the Context of Insurance..............................................................
Why is it Important to Modernize?...........................................................................................
Technical Challenges in Modernization of Legacy Systems.........................................................
Orchestrated Digital Insurer – The Complete View....................................................................
Recommendations..................................................................................................................
Conclusion.............................................................................................................................
About RapidValue...................................................................................................................
03
03
03
05
05
06
08
09
02A Whitepaper by RapidValue Solutions - May 2016
3. 03A Whitepaper by RapidValue Solutions - May 2016
Executive Summary
Insurance companies have to transition to digital enterprises, to remain competitive. It is a pre-requisite
to become profitable in this age of constant disruption. The ultimate aim of insurance is to provide
financial stability and protection for customers during all the stages of their lives and this will always
remain the same. How digitalizing will help the insurers to achieve this goal will evolve in the near future.
This paper explains how insurers can use the digitization (digitalization) opportunity to deliver greater
value to their customers. It is also, revealed how the companies can gain competitive advantage.
Insurers are able to engage more intensely with the existing customers and also, attract newer
customers with the help of innovative products. Digitizing improves profitability and facilitates growth.
Definition of Digitalization in the Context of Insurance
"Digitalization means shifting the fundamental business model to support electronic channels, content
and transactions, while balancing traditional practices that cannot be ignored (for example, hard-copy
documents and correspondence, face-to-face interactions, and call center volume). The balance required
for digitalization will depend on geography, line of business (LOB), corporate strategy and customer
preferences. Overall, digitalization will overlap with many pre-existing and emerging strategies, such as
customer experience management, CRM, e-business/e-commerce/Internet insurance, multichannel
integration, mobility and paperless operating models.” – Gartner.
expectations which further, results in dragging down of the customer experience levels.
Insurers need to explore direct-to-consumer options, particularly to target gen Y (>50% internet users),
lower-income, and other underserved segments.
Achieving Information Fluency
Many insurers are not poised to fully leverage the colossal amount of data they already have, let alone
the new sources of information and real-time analysis at their disposal.
New data management infrastructure and governance architecture should be disrupted of outdated,
siloed systems, while turning data into, both, a strategic asset and a competitive advantage.
Why is it Important to Modernize?
Transforming for Growth
Revenue growth continues to flounder or stagnate, largely, as industry struggles to attract new clients.
Adding to it, there is a drop in customer experience because of the underscored rising customer
4. 03A Whitepaper by RapidValue Solutions - May 2016
Digitalization is, also, helping to reduce fraud claim risks by integrating social media and other behavior
based algorithms into claims management.
The Bots are Ready
Digital Market Share on Distribution is Growing
With tech players launching services like price comparison websites and online service providers like
Google or Amazon, they are expected to play a major role in the insurance industry. The digital
distribution share is expected to increase drastically in the next 3 years.
When more customers begin to adopt digital insurance quoting and full online policy issuance
(depending on the insurer's strategy and IT capabilities), these services will become the main source of
insurance leads and revenue.
The emphasis on direct selling, with right choice of technologies and user experience, helps to reduce
costs, improve revenues and loyalty. This, also, enables direct feedback from customers on products.
While consumers are warming up to emerging digital technologies, to meet the changing customer
expectations (such as using applications on smartphones, improved customer experience, enhanced
customer support with human touch, etc.), increased channel demands and enterprise needs,
life insurers and property and casualty (P&C) insurers are modernizing their legacy core systems.
There are, however, challenges ahead.
04
Digital Forensic Investigator
Social media trawlers who check
digital alibis to confirm insurance
claims & bonafide.
Cyber Actuary
Works out the personal risk and
loss associated with the hack of an
insured’s digital profile.
Telemedicine Nurse
A nurse located anywhere in the
world that administers medical
checks via video conference.
Solution Architect
Figures, how to integrate data
from connected devices and
platforms into automated claims
and approvals.
Drone Pilot
Pilots multiple drones to take
photos of claims for assessments.
5. 05A Whitepaper by RapidValue Solutions - May 2016
Technical Challenges in Modernization of Legacy
Systems
Insurers are responding by developing new applications on top of the older applications. Larger insurers
have rarely consolidated their systems. This challenge lies because of the merger and acquisition
activities or channel diversification. These complicate legacy system, making digital investments
ineffective, redundant and scaling-up difficult.
Such applications, which are developed on top of the older applications, are rarely integrated and built
on isolated platforms leaving insurers to operate in a independent manner.
Such legacy applications, also, drive higher costs of operation, increase inefficiency, impair the ability to
transform business operations or add new insurance products, and fail to meet staffing challenges.
Most digital leaders haven’t considered an Orchestrated Digital Enterprise yet.
This leads to, critically, linking the technology initiatives with organizational objectives and work
backwards. Not the other way round.
Orchestrated Digital Insurer – The Complete View
Transform
effectively
Price
competitively
Customer
experience
Measure
appropriately
Operational
Excellence
Operational
Excellence
Engage
regularly
Constant
messaging
Research & Quote
Generation
Policy Purchase Policy Administration Claims Servicing
Research & Quote
Generation
Policy Purchase Policy Administration Claims Servicing
Customer experience
Insurance product & services
Business information &
data management
Insurer back office
customer interaction customer interaction
CustomersDistributorsInsurer
6. A Whitepaper by RapidValue Solutions - May 2016 0306
Planning for Orchestrated Digitalization of the Enterprise – Factors to Consider
Recommendations – Steps to Modernize the Legacy &
Core Systems to Prepare for Integration of Emerging
Technologies
Optimization of IT will touch every aspect of the business — strategy, processes, channels and
technology. When planning for and implementing insurance legacy modernization programs,
professionals should emphasize on the following factors:
Integrate people to integrate technologies
Establish a digital center of excellence to identify which and where digital capabilities would support key
business objectives. They must secure C-level support and leadership. The business must drive legacy
modernization and help institutes change management programs to guide corporate change as systems
are retired, replaced and improved.
Two heads are better than one
Review digital strategies to determine what changes need to be made.
Consult with digital partners
To understand best practices and various digital initiatives followed outside
of insurance industry that can be deployed to achieve business objectives. By providing an unbiased
third-eye review, they also remove any limitations on prepping up for the future.
Business Perspectives
Vision, mission and strategy.
Governance
Steering committee, financials,
project management, etc.
Technology
Existing technologies, required
technologies, gap & requirement analysis.
Measurement Metrics
KPIs on technologies’ performance
for ROI calculation.
Target Groups
Enterprise & consumer target
groups.
7. 03A Whitepaper by RapidValue Solutions - May 2016 0307
Assess existing technologies and identify gaps
Evaluating the technology architecture, web services capabilities, the flexibility of policy systems and
quoting engines, quoting and policy issuance speed, claims management principles and algorithms.
Analyze them to determine what functionality can be extended to digital channels.
Identify target areas and users
Identify target areas and users both, within enterprise and consumers. Do a digital maturity
assessment workshop for enterprise strategy. Assess market conditions to determine consumer needs
and online behaviors.
Develop a case study
Identify the specific technologies and trends that will help shape the future of the insurance industry,
and determine how each will provide value to the business.
Develop and enhance strategic IT initiatives
To support the digital agenda of insurers and their intermediaries.
Understand the pulse
Insurers can, over the time, leverage on its own data collected from the search engine traffic, website,
brand, offline interactions and digital IT capabilities and data services – these data should contain, but
not limited to, information on consumer perception, buying patterns, and insurer competitiveness.
This helps understanding the customer and competitor pulse, thereby, getting better products and
services to market and enhance customer experience.
Consolidate/replace systems
Reduce the complexity of IT infrastructure by rationalizing and consolidating the IT systems. Some
legacy systems have to retire when the new technologies can do the aforesaid.
Leadership Support
IT leaders should ensure that new core systems are able to support real-time business and decision
making.
8. 03A Whitepaper by RapidValue Solutions - May 2016
Conclusion
Insurers have realized the fact that the only surefire way to be in the business is to digitize. Digitization
has become the perfect way because insurers have to deal with a large number of customers who
prefer to depend on the Internet for purchasing products and services.
There is an increase in the number of insurers who have diverted to selling online. Managing paper in
any insurance business might become quite cumbersome.
Investment in paperless digital technology is being considered to realize the long-term efficiency and
also, cost savings.
0308
This whitepaper is written by Radhakrishnan Iyer, Principal Consultant and Head
of FinTech, RapidValue Solutions.
If you’d like to learn more on digital transformation and mobility, please reach
out to us at: udigitaledge@rapidvaluesolutions.com
9. About RapidValue
A global leader in digital transformation for enterprise providing end-to-end mobility,
omni-channel, IoT and cloud solutions. Armed with a large team of experts in
consulting, UX design, application development, integration and testing, along with
experience delivering projects worldwide, in mobility and cloud, we offer a wide range
of services across industry verticals. We deliver services to the world’s top brands,
fortune 1000 companies, multinational companies and emerging start-ups. We have
offices in the United States, UK and India.
www.rapidvaluesolutions.com www.rapidvaluesolutions.com/blog
+1 877.643.1850 contactus@rapidvaluesolutions.com