Other parts of this series:
It’s not enough to embrace technology – we need to drive optimum value
Every insurance carrier knows that its future success lies in innovating and adapting its business to compete in the digital age. A large element of that success, then, is linked to savvy investment in technology. Accenture research illustrates that, while 47 percent of companies are building their future growth strategies on technology and mobility, inadequate technology is listed as one of the top three barriers to growth. It is clear that IT-led innovation is critical to survival, a sentiment that resonated with 90 percent of the executives we spoke to. And it’s hardly surprising that 82 percent of companies are releasing funds specifically for investment in growth initiatives.
Investment in technology is not enough
Even if insurers select the best technology for their business, this investment is not enough. Leaders need to ensure that they extract the most value possible from their technologies to ensure that they remain competitive and grow. This starts with an analysis of the insurer’s spending on legacy technology and of the available resources of its ecosystem partners. It includes careful management of technology service costs to free up costs for growth.
Three ways to make the most of your technology investment
Insurance carriers can follow these steps to refine and realign their technology spend.
- Reduce debilitating technical debt. Avoiding incremental debt and minimize new investment into obsolete systems. This starts with an analysis of the insurer’s spending on legacy technology and of the available resources of its ecosystem partners. It includes careful management of technology service costs to free up money for growth.
- Collaborate for speed and financial leverage. Insurance leaders can analyze ways to make the most of the technologies, talent and financial resources of external partners in their ecosystem. Investments in ecosystem partnerships have the potential to yield several times the return of those in internal technologies alone.
- Relentlessly manage technology unit cost to serve. Insurance carriers need to free up the funds to obtain the technology that they require to innovate and grow. In order to achieve this, they need to be shrewd in their analysis of current technology spend and find opportunities to deliver more for less.
In this series, I will be going deeper into each of these steps to present a clear path forward for insurance leaders who are ready to achieve the best results possible through technology investment.
To discuss how your firm can make the most of its tech spend, get in touch here.