Exploring future systems and why they are the key to unlocking value and innovation success for insurance.
Since 2015, insurance managers have made significant investments in new technology, but they do not see all the value they hoped to achieve. This has created the innovation power: the difference between potential and realized value. How leadership manages technology investments and adoption in the 2020s will make or break your financial future – especially with uncertainties such as the COVID-19 pandemic or other business threats.
Accenture recently conducted its largest company survey ever to look at a Future Systems approaching the average company to keep up with industry leaders. The sample included IT level and company leaders from 51
Survey results identified Leaders (19659003) top 10 percent), Laggards (the bottom 25 percent) and Middlers who rounded the group. But you may be wondering "What are future systems?" and that's what I'm going to talk about today.
Future Systems are boundless, adaptable and radical human enterprise systems that can repeatedly scale innovations and create strategically agile organizations.
Ninety-five percent of insurance executives have invested in relevant technologies such as big data analytics, artificial intelligence (AI), clouds, software-as-a-service (SaaS) and blockchain to name a few. These are boundless, adaptable and radical human systems that break down barriers – within the IT stack, between people and machines, and throughout the ecosystem between partners and clients. A particularly important relationship and cultural change that Future Systems brings is that of business IT adaptation.
Future Systems Enables Better Business IT Customization Without Borders
In Accenture's study, 93 percent of insurance executives surveyed agreed that business IT customization is integrated to effectively scale scale innovation. This is how Canadian carrier Wawanesa drives its insurance hub – innovations must fit into the organization's overall goals.
But while leaders surpass Laggards in their adaptation of technology, investment in itself is not enough to keep up. Leaders build and invest in boundless technology that enables data, architecture and applications to work safely – enabling seamless innovation, partnership and adaptability.
Future systems are adaptable.
Future systems learn, improve and peel themselves, eliminating the friction that hinders business growth and helping people make better decisions faster. Eighty-three percent of industry executives want systems that let them swing in new directions – this is a key strength for Future Systems. Relaxation of the IT stack, the use of automation and AI throughout the company and maintaining a continuous data supply chain in the cloud are characteristics of adaptable organizations whose technology nurtures and encourages business growth.
Future systems are radically human.
Radical human system communicates in the same way that people do: they listen, talk, see and understand each other. Examples include:
- Natural Language Processing
- Computer Vision
- Voice Recognition
- Machine Learning
- Computer Enrichment
These systems have become more intelligent, making them more efficient and easier to interact with. Ant Financial's use of cloud computing and AI enables customers in car accidents to simultaneously submit an application for assessment and source information for on-site repair – all they need to do is take a photo on their smartphone.
Why are Future Systems important for insurance?
A large part of the insurance industry struggles to remain relevant at a time when older systems have difficulty keeping up with the digital disruption. Affiliated systems allow a company to be a customizable living business – an attribute that many insurance companies continue to strive for.
With innovation and innovation, strategic introduction of new technology can lead to increased revenue, relevance and loyalty and the following key benefits for insurance companies:
- Business-IT adaptation
- Faster claims for treatment
- Less fraud
- More effective insurance
- The ability to scale innovation across the company
- Flexibility to swing at times of disruption
- A competitive advantage
The sky is the limit when insurance companies use technology with a deliberate and strategic approach.
In my next post, I will deepen the mindset of Future Systems Leaders by looking at companies that create a future-ready foundation with strategic technical investments. For more insight into Future Systems for insurance, download Future Ready Systems and Full Value. Full Stop ., Or contact me here.