You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits insurers. The small business market is often viewed as an opportunity attractive to growth-minded insurers because the focus of the majority of carriers is on the larger, highly-competitive end of the market.
Something normal happened during Mardi Gras this year in New Orleans. Amongst all the chaos, a conference broke out. Workplace Benefits Renaissance held its annual event. The meeting draws notable thought leaders and personalities within the industry and, if you were able to resist the revelry in the streets, there were some interesting stories heard and lessons shared.
Think you have heard all you need to know about the benefits of cloud deployment of enterprise solutions? Get ready for more because cloud is finally in season and bearing good fruit for insurers. The latest news is Amazon Web Services (AWS) announcing its financial services competency program to the marketplace, indicating a strong focus by one of the largest cloud providers on an important vertical. EIS is pleased to have been a launch partner for the initiative. So what is the significance of the AWS move? Industry observers were quick to weigh in on how it influences insurers’ choices and approaches for core systems in the cloud.
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On February 2, Groundhog Day, something different happened at the annual LIMRA Enrollment Technology Strategy Seminar (ETSS). For the last three years, EIS Group has sponsored ETSS and each year, the latest approaches and challenges to benefits enrollment are discussed. But just as the venerable Punxsutawney Phil himself is prone to do, each year the attendees see their long shadows – of legacy technology constraints – and withdraw to comfortable, insulated dens rather than embrace an early spring of much-needed change. Not this year. For the first time, the conference coalesced around the root cause of enrollment problems: connectivity.
When the ball dropped on 2017 it opened another pivotal year for digital transition. Some insurers feel poised for digital success. For many others, small gains have been hard won and their positive business impacts quickly muted by a fast-moving business landscape. 2016 compounded their conundrum by exposing the vulnerable underbelly of insurers, Uber-style, to new business models—such as on demand insurance—new entrants, and emerging InsurTech. If all this caught you by surprise, and you have not had time to formulate a response, 2017 is now or never. Sorry, the party will have to wait.
What side of the digital divide are you on? You’ll find the answer in the new ACORD/Genpact report, Assessing Digital Impact Across Insurer and Channel Operations, which offers insight into the traits that make up either a digital leader or a laggard. It turns out that the great majority of “digital leaders” are those companies that have successfully aligned the back and middle office with the front office.
A recent announcement from Liberty Mutual shared with the industry how they leveraged our EIS Suite™ software and the power of the AWS cloud to create a new, single cloud-based platform for their benefits business unit. The implementation timeline was very aggressive and called for an accelerated schedule of getting from scope to live in under seven months. The implementation team creditably accomplished the goal and they did so by following modern software delivery practices.
In part one of this series on rating systems, we looked at how traditional development processes can expose your insurance business to risk. Among the most serious of these are having a single point of failure in your pricing model and the financial risks that result from long development cycles that limit how often you can update pricing. In this post, we take a look at a new approach that enables you to complete a rating initiative by defining and deploying rating models, tables, and algorithms in a fraction of the time, while empowering you to safeguard your margins by revising pricing as often as your business demands.
New technologies. New players. New products. New business models. The clamor of disruption is loud in our ears, but seeing a clear path for adapting to change and implementing new technologies to support change is hard. In their urgency, are insurers force-fitting disruption on old operating models and systems?
Last week I had the pleasure of joining my industry colleagues at the LIMRA 2016 Enrollment Technology Strategy Seminar in Charlotte, NC. We spent a fun evening at the NASCAR Hall of Fame which also presented me with an interesting juxtaposition because NASCAR is a sport based on speed, strategy and serious horsepower, yet our industry has been stuck behind the pace car for quite some time.
Who is the current pacesetter? It’s the majority of group benefits insurers with legacy systems that lack the horsepower necessary for their business to move up in the field.