Leveraging technology to futureproof your business

Leveraging technology to futureproof your business | Insurance Business

Leveraging technology to futureproof your business

With technology becoming increasingly ubiquitous in the insurance industry, many companies have adopted broad solutions that may not be focused on critical points of their business. Carriers need to consider isolating problems and implementing purpose-built solutions that could position the business ahead of competitors and help deliver the experience that clients demand.

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When it comes to finding the right modern tech solution for a company, there are many vendors promising all the right things: web-service based, API-enabled, cloud native and interoperable platforms. Clyde Owen, executive vice president at ClarionDoor, says carriers need to understand the value of these benefits and the importance of having systems that can work independently.

“Where there’s an opportunity to gain specificity using a platform that is intended to be interoperable, my challenge to carriers is to do so,” he said. “A system becomes much more futureproofed because it can go from place to place and can be used outside the core system.”

This requires an understanding of what needs to be futureproofed and using that analysis to configure systems and optimize workflow or the user experience. For example, one of the most critical components in insurance is product definition. Often expressed in a rate engine, carriers need the ability to change product definition efficiently, regularly, and cost-effectively. Finding ways to compartmentalize this part of the system and source vendors focused on this capability can help insurance companies create a roadmap to establishing the most efficient system for their business.

“If a system is independent, it becomes less expensive, faster and easier to work with, because it’s the sole purpose of that system,” said Owen. “If it’s tied up with a platform that’s difficult to change, it’s at risk of becoming legacy in five or 10 years.”

He advises finding an asset that’s purpose-built and can be used to extend a platform, rather than replace it. Adopting a mentality of interoperability will be key for carriers in futureproofing their systems and leveraging technology.

COVID-19 has also highlighted many inefficiencies and the importance of being able to communicate outside a system, forcing carriers who may have been complacent in the past, to act. Insurance systems have generally been very insular, which has been challenged by the pandemic. If a core platform system can’t support features like electronic billing or the ability to support employees remotely, Owen says carriers need to consider tools that could meet that purpose without having to swap out an entire platform. As more systems have become API-architected and enabled, he says there needs to be a push in education and a mindset shift.

“Carriers should prioritize finding systems that can interoperate instead of using every part of a platform whether it’s best for the purpose or not,” he said.

Don't miss this webinar on Next-Gen Insurance Technology: Flexible, Hyper-personal and interoperable, hosted by Owen and Jennifer Overhulse, owner at St. Nick Media, where they dive into the latest trends in insurance technology and discuss how the implementation of purpose-built solutions can improve your business.