Core Systems Transformation - Considerations Beyond Core

For those already on the journey or who have already completed a core transformation – are you getting all you can out of it? Regardless of where you and your organization are on this journey, there are several opportunities outside of core systems that can be leveraged to unlock the full potential of your transformation.

·        Digital differentiation involves upgrading core systems to enhance customer engagement. Portals and platforms have matured exponentially in the past few years alone, and insurers are in a prime position to focus on customizing the digital layer for each and every customer need.

·        Data and analytics: Insurers are challenged with translating data into actual insights. Too much focus on transactional data elements without a comprehensive approach of considering all data points is a recipe for failure. For this reason, we have witnessed what is an important and a growing trend of implementing chief digital officers and analytics business units within organizations across the industry. By including these experts at all touchpoints, organizations can ensure a complete assessment of all information, thereby fostering more holistic solutions.

·        Innovation: Most insurance carriers recognize the need for innovative solutions, and are devoting up to 5 percent of their IT budgets to research and development. It is important for insurers to focus on new insights and learn how to incorporate emerging technologies to align with evolving customer expectations. Common traits of the most innovative insurers include having a mechanism to capture innovative ideas across the enterprise, a project funding and prioritization structure in place, and, most importantly, a willingness to fail.

·        InsurTech: provides unlimited possibilities within the space, and adopting it is essential in establishing a progressive foundation for any business. For many insurance companies, it is most beneficial to establish a relationship with a start-up that is making progress in InsurTech. These relationships can take many different forms, including joint ventures, strategic partnerships, acquisitions, and service provider relationships. Regardless of the type of relationship, these InsurTech companies can provide the best opportunity for insurance companies to transform their systems and processes in order to better meet the needs of the customer.

Remember, providing customers the best solutions is the ultimate goal of transforming your core systems, but it is also important to remember that core systems are just one piece of a larger ecosystem of opportunities. What will truly set your business apart from the competition is capitalizing on all transformative opportunities.

For further perspective on the major issues to keep in mind for 2018, check out our Top Issues report here.