What are the benefits of insurance modernization?
Why Modernize Holistically?
Why Modernize Now?
- Improved analysis
- Enhanced stakeholder communications
- Efficiency gains
- Resource efficiency
- Competitive advantage
- Better management information
- Efficiency gains, including process consolidation and streamlining and strengthened internal linkages and reduction of internal silos
- Economies of scale
- Metric reconciliation and consistency
- Internal consistency of metrics and reporting
- Meet regulatory requirements
- Early adapter access to optimal resource pool
- First mover advantage
- – Regulatory preparedness
- – Influencing
- – Perception
- – Decisions (products/M&A)
- – Embedding value
- Maximize program flexibility
- Make processes strategic rather than just reactive
- Linkage to current strategic initiatives
The benefits of operational change will promote better business practices, greater innovation, and provide a competitive advantage. Notably, companies that modernize will benefit from enhanced data analytics, better underwriting and management decisions, more efficient capital usage, and more attractive products.
Moreover, modernizing holistically - not in a piecemeal fashion - can provide significant savings from not “ripping up the road more than once.” Rather than treating each regulatory development and business imperative as one-offs, holistic modernization can provide greater organizational efficiency, speed, scalability and leverage. Benefits of this approach include:
- Future-proof metrics – Redesigned processes and systems will produce metrics to satisfy current and future standards and regulatory requirements.
- Improved analysis – Improved automation and enhanced tools will help employees focus on high-value added analysis.
- Process efficiency – Automated feeds and processes mean reduced process times, less manual intervention, and reduced dependencies on any one individual.
- More efficient and less costly infrastructure – Reconciled processes, efficient deployment of resources, and consolidation of systems will streamline infrastructure and help drive down costs.
- Optimized use of resources – For example, actuaries will be able to spend more time on value-added analysis.
- Enhanced controls – Increased confidence in results, automated controls, and greater responsiveness in a changing regulatory environment.
- Improved governance – Clearer and more efficient processes mean less complex governance.
- Greater transparency – Greater understanding and consistency of results produced and fewer “surprises” in financial results.
- Improved stakeholder communications – Better data quality, a “single source of the truth,” and comparable performance metrics will provide all stakeholders a common “language.”
- Timely and Relevant Management Information – Facilitates strategic and operational planning and decision-making.