In today’s competitive market, the challenges and opportunities are many. In recent Accenture research, we found that consolidating IT platforms can be an enabler of high performance for life insurers.
Benefits for life insurers
Consolidation of IT platforms has been shown to benefit an overall strategy of transforming business operations, and can lead to improvements in the effectiveness of the sales and distribution function.
In fact, our research shows that platform consolidation can result in:
- 35 percent faster in speed to market.
- 26 percent lower IT application and infrastructure costs.
- 19 percent reduction in operational costs.
Platform consolidation to enable high performance
At the heart of it, outdated and cumbersome IT infrastructure is a significant impediment to cost reduction and the streamlined IT operations that are required for flexibility. Conversely, having a consolidated platform gives insurers an extra edge in enhancing existing products, launching new products or reacting to market conditions.
Having a comprehensive IT platform consolidation program can help insurers:
- Shift to a lower cost base.
- Implement a more effective multichannel distribution strategy.
- Optimize human resources.
- Comply with regulatory requirements more seamlessly.
- Deliver exceptional customer service.
- Focus on value-added projects.
Case study: Security Benefit
Security Benefit is a provider of retirement plan services, investment products and other financial services. Accenture helped Security Benefit consolidate its IT infrastructure into a single platform, based on the Accenture Life Insurance Platform.
The new platform resulted in a more than 30 percent annual increase in individual annuity premiums and reduced business costs by $7 million per year. Further, Security Benefits now maintains its own product rules, enabling the development and launch of new products on a much faster scale.
Case study: Generali
The Generali Group is the biggest European life insurer, with 2009 total premium income exceeding $95 billion. They enlisted Accenture’s help to consolidate several property and casualty systems into a single Generali system.
A key factor in the migration was that Generali needed high-quality results with minimal to no impact on the smooth running of its daily operations. Ultimately, 1.9 million policies were migrated while Generali continued on its day-to-day business.
These are just two examples of how platform consolidation can help life insurers. For more information, download Accenture Life Consolidation Services.