In a previous post, In introduced Accenture's future systems research – our largest systems survey ever – where we studied technology leaders and "backward" from more than 8,300 global companies across 20 industries, including insurance. It became clear that the industry leaders' approach to technology not only drives higher revenue growth, but also sustainable value compared to the backward.
We see this playing out in the insurance industry where leading insurers' investments in technology consider the benefits to the wider insurance organization, especially in terms of their core life and annuity systems. Life and life movement companies usually run separate business lines ( LoBs ), which often have their own distinct business model and supporting technology. Today, insurers question the wisdom of such models and begin to break down the resulting technological silos. They reveal sustainable value that also enables them to scale innovation.
In a recent collaboration with a leading life insurer, we built a digital ecosystem for its direct-to-consumer operations. The goal was to simplify its IT environment by utilizing the cloud technology to enable the operator with greater speed and flexibility to design policies with high volume and low nominal value. Looking over his company, the insurer discovered that another LoB had a similar goal for its high nominal value policies.
Key actions taken by insurance industry leaders to scale growth and innovation
The project showed four of the five key actions described in our futures systems research as leaders take to drive sustainable value from their investments in technology.
- Adopt technologies that make the organization fast and flexible
- Get grounded in cloud processing
- Recognize data as both an asset and a liability ]
- Manage technology investments well – across the company
This insurance company increases the speed and flexibility required to drive both LoBs and with the cloud to simplify its IT environment and drive profitable growth. Laggards would have stopped addressing the immediate goals, a decision that could limit the possibility of scaling later. By adopting a single flexible technology platform for both LoBs the carrier was able to adapt its system to meet the unique needs of each LoB – process applications in minutes for its low  ] policies and optimize insurance resources and costs for its high denomination policies.
The adoption of a cloud-based flexible technology architecture served as a platform to help this operator maintain value by scaling growth and innovation. They used technological advances in warranty and automation and used data to improve the accuracy and profitability of insurance in two different industries.
Shifting the mindset from "record insurance system" to "future innovation system"
Our industry is ripe for change. According to the research and consultancy firm Gartner in 99 percent of respondents stated that they had either already modernized, are in the process of modernizing or plan to do so next year. And of those surveyed, half believe that a modern system is more than a system of registration – it is a system of engagement or innovation.
At Accenture, we share a similar perspective among many of our clients with whom we have collaborated to establish a future system strategy for modernization one that helps them scale innovation to achieve full value from its technology platform. We invite you to do the same. Contact Shay on LinkedIn to start a conversation.
Further reading :
Automated guarantee: Breaks the rules to trigger a guarantee revolution
Future-ready insurance systems
1 Insurance managers have nuclear system modernization Gartner, Inc., Richard Natale and Peter Delano December 23, 2019.
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