Top 3 challenges to operational excellence for insurers


Tuesday, July 14, 2020 | By David Turner, Senior Thought Leader, SS&C AWD®

Top 3 challenges to operational excellence for insurers

The current pandemic is forcing insurance companies to reimagine their workforces and accelerate digital transformation timetables.

Improving the customer experience or achieving some type of productivity lift to gain a competitive advantage will likely require modification of an organization’s infrastructure and applications.

To get there, those firms will have to assess and overcome a number of challenges. Here are the top three:

  1. Legacy Overhang: Older technology often remains the backbone of legacy infrastructure and challenges the ability to drive technological improvement. Legacy environments are costly to maintain, tend to rely more on IT resources for ongoing maintenance and support, contribute to inflexibility, and stymie the ability to be nimble and adopt new technologies that can fill in any gaps as an organization scales.
  2. Manual Processes: Too much staff is dedicated to rote, manual processes along with the costly maintenance of paper flow. “Swivel chair” work creates costly inefficiencies as users are required to keypunch information into multiple systems.
  3. Operational Silos: A lack of visibility across an organization develops from building and deploying custom applications to meet the specific needs and requirements of individual departments.  Disparate systems also make for difficult and expensive integrations with next-generation technologies and require lots of developers to make potential code changes.            

The need for regular process engineering and continuous improvement in operations must not be overlooked when fostering a culture of innovation.

The current pandemic is an opportunity for companies to reassess both their customer-facing and internal processes and workflows to solve problems more intelligently. That said, digital transformation spending is expected to grow to more than 50% of all ICT investment by 2023, up from 36% today, with the largest growth in data intelligence and analytics.1

Process improvement can lead to a more productive workforce and lowers the cost of operations, enabling reinvestment into a more innovative platform that also leverages collaborative partnerships.

See how National Benefit Services, an SS&C client, used AWD®, our leading business process and low-code automation solution, to transform its processes and improve operational efficiencies in this "National Benefit Services" case study.

Sources:

1https://www.idc.com/getdoc.jsp?containerId=prUS45617519#:~:text=Direct%20Digital%20Transformation%20Investment%20Spending%20to%20Approach%20%247.4%20Trillion%20Between,in%20data%20intelligence%20and%20analytics



EMEA, Healthcare, Insurance, Regulation


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