What are the benefits of insurance modernization?

Why Modernize?

Why Modernize Holistically?

Why Modernize Now?

  • Improved analysis
  • Enhanced stakeholder communications
  • Efficiency gains
  • Resource efficiency
  • Competitive advantage
  • Better management information
  • Future-proof
  • 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.