Insurance carriers are making an unprecedented investment in transforming their policy, billing and claims systems and processes. This is a unique period where the convergence of aging legacy platforms, complex market dynamics, and a mature vendor landscape has made policy administration, claims, and billing transformation a top priority for insurance carriers of all size and profile.
Executive SummaryCarriers are increasingly focusing on the "transform" in core transformation, and have greater expectations of what a transformation entails, writes PwC Partner Imran Ilyas. Going beyond past expectations of increased speed to market and IT rationalization, they seek to incorporate transformations into broader strategies for data analytics, enhanced digital experiences of customers, greater underwriting efficiency and rate optimization.
Now that transformations are common in the industry—to the point where off-the-shelf software packages are proving to be viable—we have observed several new developments in how insurers are approaching them.
Specifically, leading carriers are no longer satisfied with simply implementing a new platform and then searching for ways to achieve benefits in the post-implementation environment. The definition of a successful transformation is no longer an on-time delivery that promises increased speed to market and IT rationalization. Current expectations of a successful transformation include incorporating it into broader strategies for 1) data analytics, 2) the customer and agent digital experience, 3) underwriting efficiency, and 4) rate optimization.