ARTICLE

Introduction

The insurance sector is taking on a fresh look at how to transform the business right from the core level. The industry plays a significant factor in the economy and has been continuously evolving to keep up customer demands; increasing competition and regulations are just a few to name. As private players move into the market, insurers are moving to adopt novel technologies into their operations and create strategies around it.

Insurers are looking for ways to efficiently integrate these technologies as the change will open up new avenues for profitable growth and help them gain high performance in the cutthroat industry.

How the insurance industry evolved over the years

Right from the inception, the insurance industry has contributed to economic growth and has strengthened it on both micro-level and macro-level. The industry has evolved to serve the need for individuals who need to mitigate risk on all fronts - personal, health, and financial well-being.

The convergence of three technologies defines today’s scenario in the insurance field - Cloud, Mobility and Advanced analytics - touted to be a game-changer, insurance companies are trying their digital banking transformation by focusing on two fundamental points

• Redefining the business model along with the core competencies.
• Creating multi-channel relationships with customers in real-time data.

Insurers require the innate ability to adapt to respond to the dynamic market and competition with complex applications, analytics, and a brand-new enterprise business solution that can support and create new relationships with customers and mitigate risks and fraud.

Insurance market challenges and the enterprise’s solution

Every industry has its set of unique challenges that it faces and continues to tackle it regularly. Some of them include,

The influx of untamed costs

Insurers are under duress to cut costs overhead and maintain the corporate’s profitability influx while cutting down on infrastructure, employee wages, training, etc. Apart from this, most insurance companies achieve their profits through reduced premiums and other investments to meet their ever- high overhead costs. If any financial crisis looms on the organization, it cannot depend on investment income to sustain the profits.

Need for agile product

The responsiveness of the legacy systems is one of many things that need to be changed. The non-availability of a unified customer front and detailed analytics might hinder the insurance organization’s ability to scale up to the industry standards. An inflexible solution doesn’t yield a competitive edge in a dynamic marketplace.

Tapping into the ever-changing global market

As a new market emerges, both private and public insurers, are trying their hand in the global market, but the factors, namely geographical locations, overhead costs, reduced capital, customer requirements, etc. The legacy system would not be ready to expand on a global level with the integration of new operations and acquisitions.

Demanding customer service

Customers are the lifeline for the insurance organizations and vice versa. This dynamic relationship is now stagnant with the legacy systems due to less response time and consistent interactions across all channels. The unified customer information across various data sources is what insurers are vying to meet the customers' demands without losing the relationship.

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Streamlined operations

With the integration of enterprise insurance solutions, agility is no longer a necessity. Consolidating and distribution of core operations across various channels such as policy administration, underwriting, claims, etc. which can interact with each other and address the workloads, thereby creating a flexible infrastructure devoid of inefficiencies.

Customer-focused

Creating a customer-focused organization is of paramount importance and must be seamless across various devices as possible. Through an enterprise insurance solution, you, as an organization, can apply advanced analytics to understand customer behavior better and deliver personalized campaigns. Building a customer relationship and their trust in the organization helps to align the service and products better.

Risk management and Data Sensitivity

Security and Data privacy is the prime concern for an insurance organization. With the enterprise insurance solution in place, the data privacy issues can be curbed at the starting stage and can protect both the customers’ and the organization’s data with ease. The different levels of sensitivity assigned to the employees’ level would provide the perfect access system. Any unauthorized access would enable the fail-safe mode and protect the data centers immediately. The solution also allows the organization to assess for any future risks, set up risk indicators to protect against any possible breaches.

Cost management

The enterprise insurance solution significantly decreases the overhead operation and investment costs as there is little to no expenditure for the solution to run in the institution. The enterprise solution provides flexibility and scalability at a lower cost. It removes inefficiencies in various processes such as data collection, archiving, application development, analytics, and much more, where human errors probably may occur.

Integration of third-party system

One of the notable pros of the enterprise solution is its ability to run several traditional and third-party systems, including specific tools for development, testing, runtime libraries, independent hosting system, etc. Even at the core level, the enterprise solution is equipped with the needed security and platform to host shared resources and dynamically expand the existing infrastructure with ease.

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Check into IT infrastructure and portfolio

The solution provider/vendor must have the required cloud-specific solutions and a varied portfolio of successful projects with a global standardization of products and services.

Integration of new technology with the legacy system

Some sensitive data sources stored in legacy systems need not be entirely replaced with the enterprise solutions, lest the organization goes in for an extensive change. The solution can work seamlessly with the legacy system without any response delay.

Rapid time-to-market product with Agility

The enterprise solution maintains a highly agile infrastructure with lesser time-to-market. This enables the business to be quickly deployed and initiate operations.

Flexible technology for future growth

The flexibility of the enterprise solution boosts the insurer’s ability to adapt to the trends of the market and rise to meet new challenges armed with real-time data and analytics.

Conclusion

Now that you have an idea of what enterprise solution is, we can help you get started on the digital finance transformation with the right strategy, an implementation plan, and a working model that aligns with your business goals. With the needed assets in place, Novac’s enterprise insurance solution can shape your financial institution and embark on the journey to high performance.