Leap from legacy to lean with minimum latency
Several insurance carriers have embraced heavy weight digital change to mitigate issues like greater financial insecurity, higher rates of mortality and shrinking numbers of in-person interactions. Many other carriers are following suit.
Two motives that are emerged clearly are:
The problem is in the fact that most of these revamped digital programs are not quite as effective as promised.
The reasons for digital projects not yielding desired results are manifold. However, one of the biggest challenges for insurers is the legal Policy Administration Systems (PAS). As it stands in 2021, very few insurers have made any type of investments in their PAS. Of those who have done so, several are struggling with the way forward.
As far as PAS goes, here are the major challenges in core transformation for insurers:
Insurers are often found wanting when it comes to knowledge or documentation about the existing application’s landscape or even its functionality.
This typically translates into a raging and internalized fear of job losses among executives and managers alike. This stems from several prejudices about modernization.
More than time and resources, it is the lack of will in the management to enforce a new system that promises better results but requires structural changes.
Change management is not easy - the most common reason for failure being the lack of an impactful leader who reinstates belief in the team and new processes simultaneously.
Improvements in processing time and transparency can also happen by improving the in-and-out flow
of data systems instead of replacing them outright. With this, a broader partner ecosystem
can be leveraged to make better product selection, underwriting premium-related calculations,
thereby edging past the competition.