Having outlined the stages in the journey to becoming a Digital Insurer, let’s take a closer look at the engine that powers this complex transformation.
As I said last time, digital transformation is profound, a complete change in the way the entire insurance business works. It makes sense for that complexity to be managed centrally, and for the digital capabilities to be consolidated in one place to ensure maximum efficiency. This central digital capability—the digital center of excellence—offers a number of benefits:
- Scalability for quick deployment, and “reserve strength” to cope with demand peaks (for example when a digital project is launched) and normal, day-to-day activities.
- A platform that encourages the collaboration necessary to spark innovation, share best practices and remain on top of technology trends.
- Maximum return on investment by pooling costs, sharing resources and ensuring a consistent digital approach—essentially the shared services model.
- Better talent management by providing access to scarce skills as needed, and better retention of those skills by providing an exciting career path.
Cloud computing is just one of the technologies that is transforming the industry. To learn more, read P&C Insurance – The Digital Insurer: Change Now to Get Ahead and Life Insurance – The Digital Insurer: Change Now to Get Ahead (PDFs; opens in a new window).
Next time, we’ll look at the end goal, and understand what a Digital Insurer looks like.