Current scenarios: Challenge and change
Today, property and casualty insurers are struggling with significant market headwinds.
Firms must manage several complex scenarios, such as new and existing regulations and increasing operating cost ratios. Additionally, they must also look at improving customer experiences, accelerating time-to-market on new products, and embracing ‘disruptive’ tech trends - mobile and social.
Unfortunately, many companies are constrained by antiquated legacy billing, claims, underwriting, policy administration, and broker management systems that hinder growth and agility. What’s needed is an end-to-end modernization blueprint impacting core systems and platforms, with a strong competitive edge.
There are several recommended approaches which include the following: Replacing the legacy platform with packaged solutions, bolting on new functionalities to the existing legacy platform, and migrating from the mainframe to contemporary, mid-range platforms.
Some insurers prefer a migration from mainframe-based legacy application to modern three- or four-tier packaged applications (COTS offerings) for policy administration, claims management, and other core insurance processes. This approach shifts existing business books off the mainframe, completely replacing existing application logic. In addition to dramatically expediting web and mobile access capabilities, it enables firms to reduce dependencies on IT teams, minimizing the number of custom applications.
A number of these COTS packages offer end-to-end solutions of not only policy, billing and claims, but also complementary front-end-facing distribution core and back-end analytics services. Notable providers in the segment include Guidewire, whose suite of highly configurable software products, (namely ClaimCenter, PolicyCenter, and BillingCenter) leverages analytics for effective underwriting, policy administration, billing and claims management.
Migration done right: Business intelligence for enhanced performance
A core system transformation program is a protracted process, carried out over a period of time.
What are the essentials that, therefore, must be kept in mind?
A single source of clean reference data for the organization, a 360-degree view of the customer, and well-outlined agile framework and operational metrics are the principal areas of interest for most companies. This is possible through a future-state complimentary or alternative reporting and analytics architecture, developed in parallel with, or as part of the core-system transformation.
As always, the transition is spearheaded by innovation, agile methodology, new technologies, and a fresh approach, that understands the overarching influence of business intelligence and analytics.
The agile framework should help maximize value from the data, generating valuable insights ready for intelligent implementation, with or without human intervention. A powerful and agile methodology-based architectural framework capable of carrying out the above function must leverage new technologies such as Hadoop, Big Data Lakes, Data Visualization, and Cloud Infrastructure – enhancing customer experiences through next-gen analytics capabilities.
Integral to this future-state architecture is the concept of a data ecosystem leveraging modern tools and platforms to co-locate pan-organizational data and 3rd party data sources within a single managed platform.
This allows for significant time savings in data movement, into and out of analytic models and databases. Big Data Lake is another key component, focusing on the rapid accumulation of a broad and deep array of structured and unstructured data. It aims to iterate over the data in short agile sprints using a number of advanced statistical, machine learning, and visualization tools.
Towards a vibrant approach: The HCL way
With massive amounts of structured and unstructured data generated from diverse data sources, Big Data analytics cannot manage the large incoming volumes.
Augmented with a variety of business capabilities, HCL’s end-to-end solution ‘Enterprise Intelligence Hub’ on Big Data Lake enables multiple use case innovations.
With an ability to ingest data anytime, anywhere, process data and deliver Data As-a-Service, HCL’s EIH on Big Data Lake solution is an agile methodology-based mature service successfully delivering business outcomes to leading global enterprises. This innovation-centric approach has led to the development of Data-As-a-Service, Analytics-As-a-Service, and client-centric co-innovation labs in the US, UK, Mexico, and India.
When a global financial services major sought to analyze customer affinity towards its products and services while simultaneously developing a community of engaged and loyal customers, HCL established a Social Media Listen and Response Center enabling an omnichannel listening and respond capability with governed processes and technologies. Data integration across social media, surveys, and business applications consequently led to cost savings, on-time actionable insights, sales and marketing effectiveness, and influenced customer growth.
HCL’s agile methodology and advanced analytics team worked on churn analytics and customer 360 initiatives for a European insurance giant. It allowed the insurer to identify low value as well as high-value customers, ensuring proactive steps or offers for customer retention.
HCL also leveraged advanced analytics to determine cross sell opportunities for a large US-based insurance firm, facilitating the seamless conversion of single product customers into multi-product customers. Additionally, data models and actionable insights helped in marketing campaign segmentation and streamlined messaging.
Therefore, modern enterprises like yours must carve a smarter and robust future with the limitless possibilities of EIH.