This paper discusses how major insurance organizations are taking action to ensure they will be able to endure in the future. We discuss what major insurers are doing to modernize their businesses to compete more effectively, and to stay relevant and healthy. We are particularly interested in how these insurers evaluate and manage risk and cost principles for their insurance technology investments, and how they are finding the right balance between maintaining their existing solutions and making investments to capture new opportunities and exploring the potential capabilities of insurance technology ecosystem partners.
Based on our interviews and research in insurance and other regulated industries, we have identified 10 practical and replicable provocations for insurers to focus on:
These 10 provocations are:
- Satisfying deep customer needs. “Our core belief is customer focus, it’s our number one topic.”
- Operating model. Insurance business models and technology operating models have been treated as different things and they aren’t any longer.
- Modernizing technology. The stranded costs of insurance technology will choke future growth opportunities. Modernization creates cost parity, but more importantly agility.
- Insurance technology skills and ways of working. The transition from old skills and ways of working to new ones is going to be tough. You can’t tiptoe into this change, but there is hope.
- Technology transformation risk. The most successful insurance technology transformers are using their core skills of understanding and balancing risk to digitalize more safely.
- Technology strategy. Technology strategy becomes business strategy, and therefore a boardroom topic.
- Insurance platforms and ecosystems. Simplification, consolidation and standardization lead to insurance by configuration.
- Sources of disruptive risk data. Where are the killer use cases for and differentiators of new data?
- Transformational leadership behaviors. Transformational leadership, ownership and politics are complex. Successful leaders find the balance.
- Competing more effectively. With every technology deployed, there’s a strategy to exploit it competitively.
About the DXC Research authors
Ash Pal works with leaders on large transformations, primarily in regulated industries. Clients engage him to help them successfully improve their organizations through digitization of leadership practices. His progressive thinking and practicality help modernize what are often well-established, conservative, change resistant firms. His regulated experience covers a wide variety of the world’s largest insurers as well as firms in other regulated industries such as banking, energy, pharmaceuticals and healthcare.
Dr. Alex Kokkonen works with clients to solve their most pressing business issues via research-led advisory interventions. With over 25 years’ experience, Alex brings extensive international and multi-industry experience from working in a variety of multidisciplinary leadership positions and diverse cultural settings for major blue-chip companies. She has driven IT and business research concepts into business transformations, completing two doctorates in IT and business research with several publications.
Krzysztof (Chris) Daniel is an unreformed explorer, teaching others how to effectively use Wardley maps for their benefit. His primary focus is on the identification, development and usage of mapping in particular use cases, such as outsourcing, project management and restoring balance of power, as well as emerging financial frameworks. Chris enjoys mapping sessions with clients, guiding a process of identifying opportunities, risks and defining growth directions. Chris is the author of the online Wardley Mapping Course and an active member of the mapping community.