Core is More!

We’ve Gone Fully Digital
In these exciting, fast- and ever-changing times, the insurance industry has evolved beyond the information technology era and entered the age of digital innovation, or digitalization – the methods and processes to initiate, manage and complete multi-media inclusive digital interactions, driving and fomenting business opportunity creation and disruption to existing business models. Digitalization mandates that insurers possess digital strategies and business models to support those strategies.

Insurers may have a strong desire to thrive in this new world, but are perplexed about how to make strategic decisions, because there’s no sense of clarity on the transformation end state. There are many options and approaches on how to interact with your applicants, agents, business partners. How can insurers coalesce these into a single digital strategy and digital business model?

The answer for insurers (across both property and casualty and life) is NOT to diminish the importance of core in order to chase full digitalization, but rather to understand that the two can form a perfect union.

Core is More! 
Core functionality has not fundamentally changed, it has just evolved and extended its accessibility. A complete digital platform should be constructed so that individual business processes, within the digital business model, are available across the core platform.

For example, a policy administration system will no longer need to have premium calculation within the physical constructs of the prior PAS architectures. Instead, the requisite calculation engine would be exposed as a digital business service and accessible across multiple digital points (such as the PAS, consumer quotes and illustrations). These individual business services are then consistent across the shared platform.

Maintenance, support and enhancement of functionality would occur in a single, shared business service, reducing overhead support costs. The technology of digitalization is the personification of service-oriented architecture and enterprise service bus with web services.

Today, insurers possess a plethora of information from, and about, their clients, prospects, agents and business partners. It comes in many constructs and formats. Insurance providers must be able to extract the necessary information from these seemingly overwhelming streams of data to provide a unique and personalized customer experience.

A business intelligence solution that is fully integrated to all aspects of an insurers’ digital business platform – which combines sales, underwriting and in-force policy data – is critical. Utilizing this analysis will help define where corrective actions are required and where positive situations can be even further improved. Connecting the business intelligence analysis results to the digital platform in real time will enhance the immediate responsiveness of the online interaction with customers and prospects. Those results become viable and reliable input to the neural network.

While maybe five years ago PAS and supporting functions were solely considered core systems, today we understand that with digitalization, “Core is More!”

For more information, please check out our white paper, Core is More.

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Jerry Whetnall

Jerry Whetnall

Jerry Whetnall is the vice president product strategy life products, North America. He brings decades of experience in information technology and the insurance industry to Sapiens. Jerry possesses extensive leadership experience within the financial services industry.

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