Embracing insurance ecosystems to manage change
How to extend insurance investments while building the new to serve today’s digital consumer
Ecosystems are flourishing along with the need for rapid integration and real-time everything. So, it is no surprise that digitisation of the industry is a hot topic. Ninety percent of insurers participating in a recent survey on priorities stated that they are engaged in digital transformation in some form.
– Karlyn Carnahan, Celent
Many factors are driving change in the insurance industry – mergers and acquisitions, vulnerable legacy environments, rising volumes of data and increasingly digital-savvy consumers who expect different experiences and products. All these factors, along with the desire to harness innovation, IoT data, analytics and AI, are creating demand for an insurance ecosystem that blends insights with core technology capabilities to produce business outcomes.
The right insurance ecosystem enabled by a digital insurance platform can accelerate the consumption of new technology and new data sources to support new products. It also provides an approach to transformation with the flexibility to respond quickly to future change.
With more than 80 percent of insurance companies planning to increase their legacy modernisation spending, according to Gartner, the market is ready for change. However, the need for a low-risk transformation approach is inherent in insurance, the industry exemplar of managing risk. The challenge is how to enable a digital future built on customer centricity without interrupting business today. And what can business leaders do to drive the desired business outcomes of creating efficiencies, unlocking capital and driving growth opportunities? The answer is building an insurance ecosystem and a path to get there that embraces both business and technology needs.
The ecosystem of the future is no longer only about which partners and products you use, the services you consume, or even the functions and offerings you support with core insurance software. According to PwC, the term “ecosystem” refers to an interconnected system of offerings from a variety of participating providers, allowing customers to fulfill multiple needs through an integrated user experience. An ecosystem built on the right technology platform also enables you to extend the value of prior system investments, while introducing new capabilities and creating seamless, end-to-end processes.
The first step in protecting the value of your existing investments is enabling these technologies in the ecosystem with approaches such as RESTful APIs. The ecosystem also facilitates co-innovation, adding new capability and moving to a consumption-based cloud model. The beauty of an ecosystem approach is that it allows you to choose what technology you use, and the partners you work with, to give you the flexibility to adapt to a changing marketplace and remain relevant.
Insurers also need to embrace new technologies, accelerate automation adoption and use data more effectively to improve the customer experience and reach new markets with new products. The winners will be those who execute well at pace, engage with customers beyond the usual touchpoints and choose the right set of partners to help.
As the #1 provider of core technology to the insurance industry globally, DXC has unparalleled domain expertise and a track record of developing, deploying, managing and evolving mission-critical applications for customers over the years. DXC’s prior decade’s focus on never leaving a customer behind becomes our advantage today as we gain traction with our modern digital insurance platform for the future now proven in installations around the world.
No other IT software and services company can bring together an ecosystem comprised of the people, data insights, process reinvention, hyperautomation tools, conversion methodologies, technology foundation and partner/insurtech capabilities to enable the dramatic change required to compete in today’s insurance market and position for growth in the future. DXC plays the role of the enabler for this change, the orchestra conductor, bringing together all these components to maintain value as you extend or start to move away from legacy systems and applications to produce the desired outcome of silent, secure operations.
We co-think, co-innovate and co-author with our customers and partners. We deliver what they need and help guide and co-invent their paths into the future. We’re in it for the long haul and we’re in it together. In many cases, this means taking their complex policy environments and running the business for them. We look ahead and challenge ourselves to continue advancing the insurance ecosystem, keeping pace with regulatory changes and adding critical new capabilities.
Our DXC experts are extensions of our customers’ teams and proud to represent their brands. We pull capabilities and expertise from all layers of the Enterprise Technology Stack and have built a reputation on a foundation of trust, resilience and deep domain expertise.
Our mission is to listen, learn and then help insurers assemble the right ecosystem and orchestrate their transformational journey, enabling them to extend investments, while building a new foundation to engage consumers, address rising costs and create new channels for growth.