April 24, 2018 | Written by: Noel Garry
Categorized: AI | Claims | Cloud | Insurance Platform | InsurTech
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Platform models that offer innovative products in a multi-partner ecosystem are disrupting traditional businesses. With customers getting tailored products and instant services from other industries, how will forward-thinking insurers beat new entrants?
Insurers face two challenges today: Without frequent customer interactions, insurers lack ways to build rapport and meet customer needs at the point of risk. Reliance on traditional systems and distribution models leaves insurers struggling to deliver offerings that address customers’ expectations. Yet some insurers and insuretechs are catching up, and pulling ahead.
Platforms help meet customer needs of today with new products made possible by innovative technology. With a platform approach, insurers can be agile, improve differentiation and customer value. The IBM white paper “Drive differentiating value and fill critical gaps with a platform strategy,“ reveals new challenges and radical opportunities facing insurers in a platform-driven environment.
An industry platform is a set of vertically integrated technologies on which multiple partners develop a shared-value ecosystem and offerings to customers. To remain viable, insurers need to concentrate on high-value, high-opportunity activities driven by platform ecosystems and technology. However, many insurers focus efforts on eroding customer bases and outdated hardware and systems – in spite of shrinking returns. That focus needs to shift.
The IBM Insurance Platform, created by MetLife and IBM, together with Majesco, is built to power just such change into activities with high potential. A few of the platform features are:
- Core operational insurance industry applications
- Underlying compute platform provisioning: Cloud, dev-ops and security
- Interface for employers, employees and brokers
- Interoperability with enterprise AI, analytics, regulatory and reporting
- Interconnectivity with third-party providers
Tools to interface with other enterprises, securely and at scale, can be integrated in the platform. Ecosystem partners might include employers, employees, business partners, suppliers, vendors and data providers. Platform capabilities can also drive more precise risk decisions. Artificial Intelligence (AI) can improve decision-making at points in the value chain, including underwriting, claims, legal, regulatory and fraud.
Automation can replace repeatable processes with software scripts, optimize operations and enable humans to focus on truly adding value. AI, mobile and IoT provide opportunities to create engaging products and services based on timely, deep customer insights. They can determine the best way to match a product with an individual’s perception of risk and insurance and explain risk in ways that match temperament and behavior.
Distinct from most platform offerings, the IBM platform provides “insurance in a box” as a single unified platform service. It addresses all aspects of insurance operation IT provision with all requisite hardware, software, services and partner integration. IBM Insurance Platform has consumption-based pricing to support ease-of-entry. It is security-rich and supports variable and simplified provisioning. And IBM Cloud provides the means to respond to marketplace changes quickly.
Learn more about the opportunities using an insurance platform. Register to read the complimentary IBM white paper.
Learn more about the IBM Insurance platform here.