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:
- Download Technology Trends in the Life Insurance Industry: Part 1—Breathing New Life into Multi-Channel Support, Analytics and Customer Segmentation (pdf; opens in a new window).
- Download Technology Trends in the Life Insurance Industry: Part 2—Breathing New Life into Platform Rationalization, Compliance Demands and Supporting Global Expansion (pdf; opens in a new window).
- Visit Accenture insights on life insurance.