CASHING IN
When we look at the success of this approach , some key themes emerge repeatedly .
Firstly , API-based technology is important . That remains true . However , if the technology is built into the way an insurer currently works , it dramatically reduces the chances that it ’ ll be transformative . Giving way to an understanding that cloud-native , highly extensible , customer-based technology built on MACH principles is crucial .
Without it , a lot of the changes in experience , new products and propositions and the intelligence needed to deliver these effectively are harder to derive . After all , legacy is usually cheap and reliable in its linear function , so disrupting this has to be to drive new value creation .
at the heart of their business and technology design will be critical .
Transformation requires a change in the organisational mindset
When considering adaptability , the primary challenge for insurers is that their 1980s IT architecture and cost base , aka legacy , is prohibitive . It makes adapting to the ever-shifting sands of the environment , market , and customer too slow and expensive .
It ’ s becoming apparent to us that adaptability and the cost / flexibility of change are increasingly key to the transformation goals of insurers globally . To achieve this , a new business and technology working model is needed . An ‘ agile ’ model where cross-functional teams are engaged in the analysis , remediation , and deployment of effective change . All while reducing the reliance on IT and highcost IT functions along the way .
It ’ s a model that puts customer data at the centre of every decision and outcome , supports multiple product lines , and converges multiple systems into one
Mike Dwyer , EIS CTO and Co-founder
platform . A model that delivers a platform that embraces the benefits of forming new partnerships across an ever-wider ecosystem , be it new data , IOT , InsurTechs , data and analytics capabilities , or underwriting workbenches .
In short , a customer-centric model built on modern technology principles that can rapidly and cost-effectively adapt .
Like in eCommerce , this model performs best on highly agile and adaptive platforms . API-based integrations are fine , but the ability to make these work well and efficiently requires absolute data-fluidity , event-driven architectures , and microservices . When brought together , they power change through the manifestation of each integration ’ s value to a customer , employee , broker , or employer .
Configuring this through tooling as opposed to code brings huge efficiencies . It reduces the need for high-value IT resources and avoids the typical bottlenecks in IT change while prioritising the ability to push multiple changes across multiple parts of the insurance ecosystem simultaneously .
The priority is to solve key problems and focus on differentiating opportunities in the early implementation phases . Minimum viable product and minimum viable platform are useful frames for driving this focus because they create momentum and success early in transformation programmes .
Crucially , when laying a foundation that allows for ongoing adaptivity , creating high levels of self-sufficiency is the best way to achieve overall success . This never means doing it alone , but it does mean that technology providers must drive higher degrees of training and knowledge into the insurer and their partners at the earliest opportunity .
Driving adaptability success via tech transformation
To make sure this new approach is successful , it ’ s essential to bring IT and business teams closer together . This is key to making innovation a working model , not just something that happens in a lab .
Change is risky , disconcerting , and mostly undesirable . So , it ’ s understandable that people are inclined towards a model of working that ’ s more attuned to what they ’ ve always done . Therefore , focusing on value creation and making sure everyone involved is clear about why new ways of working will be better for them is critical .
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