Insurance Blog | Accenture

Leaders are reducing the innovation achievement gap with a Future Systems mindset and method.

You may have heard the Woody Allen quote that 80 percent of success in life is just showing up—but we often forget that the way we show up is what lays the foundation for the remaining 20 percent.

Accenture’s recent Future Systems survey found that while investment in key systems is necessary, it isn’t enough to ensure market leadership. Even Laggards invest in technology, but silo-based spending widens their innovation achievement gap. Insurance Leaders and the top Middlers build future-ready systems, while Laggards don’t.

In my last post, we explored the what of Future Systems. Let’s delve into the how by looking at companies who are getting over the Future Systems bar with investment in boundaryless, adaptable and radically human IT systems.

Insurance Laggards lack the business-IT alignment of their peers.

These four leading organizations are breaking down silos and leveraging cloud and data technologies to create agile businesses that have room to grow.

Lloyd’s targets simplified market access, lower costs, higher client value

In spring 2019, Lloyd’s of London announced a new strategy focused on delivering higher quality risk protection for the market’s clients. Described as bold, the new strategy includes several transformational initiatives with potential to shape the future of the global insurance and reinsurance market. This strategic multi-year investment program supports the insurer’s growth, effectiveness and productivity, while downsizing its cost base and targeting a culture of inclusivity and innovation.

Ping An invests in technology R&D with fintech and healthtech ecosystems

Chinese insurance giant Ping An announced a major investment program in 2018 that includes expansion on new technologies—artificial intelligence (AI), blockchain and cloud computing—to boost revenue growth for its five ecosystem businesses. By applying innovative technologies to these ecosystems, Ping An will seamlessly create value and engage customers with easy, trusted and relevant financial services—with the added bonus of further business growth.

Swiss Re launches Digital Market Center focused on AI and data analytics

European insurer Swiss Re recently formed a strategic alliance with Microsoft Corp., which will provide digital tools to support Swiss Re’s new Digital Market Center. The center will help develop next-generation tools to transform industry prediction and management of risks, as well as new product creation. Swiss Re’s work will use data analytics and AI to provide broader risk insights for connected vehicles and mobility, industrial manufacturing, and natural catastrophe resilience.

Bonnier AB automate data to become GDPR compliant

When the General Data Protection Regulation (GDPR) compliance deadline caused panic across the EU and the UK, media giant Bonnier AB knew it needed a solution that a) could quickly develop compliance across 180 siloed business units, b) was cost-efficient, and c) would keep up with the continuous, evolving commitment mandated by GDPR. Accenture worked with the Scandinavian group to implement a solution to discover and automate data across individual systems. By enriching its data, Bonnier turned a compliance-led data program into a source of competitive differentiation and created space to pivot with ease and speed in the future.

Leading companies are making strategic investments in future systems 

Though clichéd, the saying “you have to spend money to make money” exists for a reason. Between 2015–2018, the 10 percent of companies identified by our survey as Leaders experienced revenue growth twice as fast as the Laggards—those late to adopt Future Systems or who opted not to direct a greater percentage of their IT budget towards innovation. Frequent reinvestment is also important, as disruption and change are constant in today’s digital climate.

Today’s fast-paced digital landscape has changed the tech playbook. Leaders are not only investing and reinvesting in innovation, they’re adopting technologies earlier and deliberately, with the mindset to create systems that complement each other. The strategic investments of some of the world’s top insurance companies and a leading media company are examples of the non-siloed approach to systems transformation that is imperative as technology continues to evolve.

My next post will focus on the assessment of Future Systems readiness and talent. In the meantime, for more insight on the Future Systems for insurance, download Future Ready Systems and Full Value. Full Stop., or get in touch with me here.

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