Insurance technology is helping carriers solve many challenges.
The insurance industry has opportunities at every corner with an abundance of possibilities for growth. Cloud-based technology is key in enabling insurers to modernize operations and meet the ever-evolving needs of their customers.
Agile, intelligent and evergreen are fundamental building blocks of a resilient and successful insurance business.
Agile means being able to flex proactively and quickly with the business, product, and service expectations and needs of consumers. Intelligent is making the best use of data and analytics to determine what areas need change and where automation is optimal. Evergreen refers to the desire and need for companies to keep technology stacks current and avoid technical debt, which allows them to increase the value of their investment through innovations from partners.
SaaS, cloud and partner ecosystem – A powerful combination
One critical component of agility is speed to market, which includes both launching new products and refining current offerings to introduce them to new markets. Carriers have the ability to take existing product definitions to build new versions when they use technology that is low-code and software-as-a-service (SaaS). This creates both speed and efficiency, reduces repetition and errors, and, as an added benefit, keeps products within a single system. With this model, carriers are better equipped to scale and expand at the velocity they desire.
Insurers must also be intelligent to compete within the market. Insurers have a lot of data available to them, but many need help sorting it out or determining how to derive the most value. The shift to utilizing new analytics tools and capabilities has accelerated as insurers push to better predict outcomes, decide what to automate, and adjust products and services.
Being intelligent also comes from leveraging extensive ecosystems of technology capabilities. Carriers and agencies know the “secret sauce” of insurance, so the easier they can access and implement tools along the way that allow them to innovate, the better. The industry is rapidly shifting towards adopting core systems supplemented by the likes of artificial intelligence (AI) and predictive analytics.
By emphasizing being evergreen, insurers can rely on receiving regular technology optimizations and updates with little, if any, intervention or disruption. Insurers and agencies can be assured they always have the latest version of their technology with the newest features or, possibly even more importantly, the features that suit the organization’s needs. Low-code tools keep IP separated from core system code, which does two things: it allows carriers to always stay up-to-date with the latest platform enhancements while also eliminating the need to write code every time an update is performed. Customers are enabled to be much more agile in the cloud.
A vision for the future of insurance
I envision insurance expanding its powerful capabilities to protect and support more individuals, families, and businesses and to continue to be there when consumers need it the most. Insurance is a necessary and meaningful industry and one that I feel is deeply rewarding to participate in. This insurance industry gives individuals and groups stronger security in managing risks, people and families can live more fulfilling lives, and businesses are more willing to take chances on innovation because of its reality.
Of course, even an industry that exists largely to add value and security to people’s lives and businesses is not without challenges. Beyond modernizing and migrating away from cumbersome legacy systems, one major challenge is that insurance is impacted directly by the moving world around us daily. These events can be significant, such as destructive weather patterns, health crises, and supply-chain challenges. And, when disaster strikes, insurance is needed most. Certainly, the insurance industry’s full potential cannot be reached without becoming more agile, intelligent and evergreen.
Placing an emphasis on maintaining these qualities will help insurers survive and thrive in the face of changing market dynamics. It will also help carriers react to these dynamics through changes to products and rates. The faster insurance companies get to market, the faster they can iterate and evolve products, and the faster they can pay out claims, the more people and businesses they can protect and restore.
A few final thoughts
Cloud-based technology empowers insurers to redirect their resources to the business, respond more quickly to market conditions, streamline operations, and incubate ideas that will make them faster, smarter, and more competitive.
The future of insurance is agile, intelligent and evergreen, and it is empowered to innovate.
Michael Jackowski is the CEO of Duck Creek Technologies. The opinions expressed are the author’s own.
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