It’s not news that insurers are under pressure every day to create better digital experiences and new insurance products and services. Building your new ecosystem enterprises more effectively and efficiently via cloud technology is one way to do this.
Digital insurance transformation isn’t slowing down anytime soon, but the good news is, it doesn’t have to be painful to deliver change anymore. Meeting your customers’ higher expectations means undergoing a technology transformation and teaming up with the right partners to guide you through the process.
In our new whitepaper co-authored with Microsoft and PwC, “How Cloud-Native Insurance Platforms Will Power the Industry’s True Transformation,” we explain this phenomenon and offer our predictions for technology trends for the rest of 2022. Here’s a preview: the landscape as we see it.
The three phases of insurance technology transformation
Most insurers have moved through a series of technology-driven transformation phases with mixed success:
- Phase one: IT driving efficiency in business process and operational scale
- Phase two: The experience economy changed the relationship model, allowing insurers to operate in a lower-cost, higher-frequency, and more self-administrated way – eventually in the hands of their customers via mobile
- Phase three: In this current phase, the sheer volume and depth of data, the power of IoT, and the predictive power of AI and MLOps, alongside deep personalization, all infinitely scalable through the cloud, has finally created a raft of new value potential and agility never seen before in the industry
There have been a number of core services entering the insurance market, and various cloud technology offerings all aimed at driving this third phase. However, nearly all of them simply put the power of new technology into the context of existing technology structures. These, in turn, reflect the overall organisational model of the insurer, creating large monolithic structures either aligned to policies or the teams associated with that area of risk.
Many existing carrier systems such as billing, claims, payments, and policy administration were built on legacy technologies, which leads to critical issues that hinder opportunities for growth. Moving to the Microsoft Azure cloud platform helps insurers lower operational costs and manage risk, policy pricing, underwriting, claims processing, and fraud.
Transforming your insurance software platform doesn’t have to be a struggle. By teaming up with the right partners, you’ll position yourself for success in the long term.
For more, check out our whitepaper with Microsoft and PwC, “How Cloud-Native Insurance Platforms Will Power the Industry’s True Transformation.”