Technology trends in life insurance (Part 2 of 3)

Last week, I discussed technology-enabled capabilities that life insurers should develop, especially multichannel capabilities, advanced analytics and customer segmentation. This week, I’d like to address software trends that affect the life insurance industry.

Standardize and simplify IT infrastructure

Given the capabilities that I discussed last week, it’s critical for life insurers to have IT infrastructure that enables them to be agile and flexible. Yet, most insurers still deal with a complex IT environment and many still struggle with legacy systems.

Consolidation to simpler systems is critical, as is migration from old to new platforms. Detractors will focus on the risks and costs of doing so, but standardizing and simplifying IT infrastructure can help insurers deliver more effective service at lower costs. In the long term, a thoughtful consolidation approach can drive profitable growth.

Improve data capture and reporting

Effective data capture is at the heart of basic service, product innovation and competitive advantage. It can also equip an insurer to better manage risk and respond to compliance demands. The right software platform or managed-service approach can remove some of the complexity of data capture. Rather than use a compliance approach of referencing transactions for reporting, insurers can benefit from software that configures data within the system for compliance.

Create a more agile organization

To enable agility throughout the organization, insurers need robust, flexible and configurable systems and software solutions. The software must support end-to-end functionality, and must be delivered in a componentized way to ensure that the system can be upgraded and maintained over time.

Next week, I’ll talk about how the right technology choices can help insurers expand globally, adapt to a changing landscape and plan for future challenges.

To learn more:

Michael Costonis

About Michael Costonis

Michael Costonis is Managing Director of Accenture’s Insurance practice for North America. He is responsible for setting the overall vision and strategy for the practice, as well as pursuing new client relationships.

Costonis has twenty years experience developing, managing and deploying large scale technology systems, business processes, and strategies for some of the world’s leading insurers, including property & casualty, life, and multi-line insurance companies. In his career with Accenture, he has worked with more than 50 leading insurance clients in 14 countries around the world.

In addition to his role as North America industry executive director, Costonis is the lead for Accenture’s global claims services. In that role, he oversees claims strategies, assets, capabilities, and sales development. He also has led Accenture’s Insurance Solutions practice in North America, where he was responsible for driving growth for Accenture’s asset-based business in Insurance, including claims, underwriting, and policy administration.

Costonis has authored several articles in leading insurance trade publications, and has been quoted in The New York Times, Bloomberg News, Reuters News, Best’s Review, Insurance & Technology, InformationWeek, National Underwriter, Technology Decisions, and the Philadelphia Inquirer. He has spoken at several leading industry conferences in the U.S. and internationally.

Costonis received a bachelor’s degree in political science from Swarthmore College (Swarthmore, PA). He is based in Philadelphia.

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