Technology trends in life insurance (Part 3 of 3)

This is the third in a series on technology trends in life insurance. If you haven’t already, check out the first two posts in this series:

This week, I’ll look at how the right technology choices can help insurers support global expansion, deal with changing value propositions and meet the challenges ahead.

Supporting global expansion

In a global Accenture study, more than three-quarters of insurers stated that international expansion is a critical or important driver of economic value. However, geographic boundaries are becoming invisible, whether we’re talking about product types, technical capabilities or consumer behavior. Increasingly, insurers that apply technology consistently across their organizations will be more efficient than those that don’t. At the same time, insurers must balance global consistency with local relevance.

Dealing with changing value propositions

Life insurance distribution is based on branded, captive agents and a wholesale capability that makes use of independent brokers. But in the property and casualty insurance market, online aggregators have made a significant dent in the industry, especially in the United Kingdom. The salient feature of these aggregators is that they offer guidance to people at the moment of decision-making, essentially charging for advice, not just products.

Life insurers should take a chapter from the aggregator’s playbook. By positioning themselves as trusted sources of advice, they can be competitive. From a technology standpoint, that means engaging with customers in any way they can—including social media.

Meeting the challenges

Advanced software can provide insurers with a platform to facilitate an industrialized approach to product development—one that’s flexible and agile, targeted for customer segments and based on advanced analytics. Attributes of such an environment include:

  • Design and configuration capabilities.
  • Product development productivity and quality tools.
  • Deployment management utilities.
  • Run-time environment.

To learn more, download:

Michael Costonis

About Michael Costonis

Michael Costonis is executive 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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