IT Strategy |
Modernization |
Regulatory Compliance
IT StrategyCustomer expectations and demands have quadrupled in the recent years while new customer segments have gained importance. These factors coupled with a highly competitive landscape have resulted in carriers having to deal with impressive product...
and service offering challenges. Traditional distribution channels must be redefined and digital channels need to be exploited. On the other hand, regulatory changes across the financial sector, healthcare and consumer protection are still evolving which puts increasing pressure on the overall operations supporting the Sales to Issue area. A holistic and balanced approach to the five major imperatives discussed in this paper will enable life insurers and wealth management companies to take a leadership position across the Sales to Issue process in the 21st century.
Global economic and industrial developments have changed the risk profile of insurance companies. They have realized the importance of a risk-sensitive system in managing scarce capital. To deploy scarce capital...
effectively and to maximize economic value, they need to move towards risk-based capital wherein the company's capital requirements are based on the risks that it faces. Regulatory changes have also compelled insurance companies to move towards risk-adjusted return. Many companies have moved from a silo-based approach to a holistic approach for Enterprise Risk Management. The paper discusses ERM implementation challenges and recommends a structured approach to implementation.
Integrating disparate existing technology systems and developing a single view of the customer present a challenge for many insurers. Many are developing a common service workstation for their call centers....
Call centers that provide a single touch point for customer accounts are called Customer Interaction Centers (CIS). The paper discusses some of the principles that must be kept in mind while developing CIC applications.
Copyright © 2006 by A.M. Best Company, Inc. All Rights Reserved. Reprinted with Permission.
Our research indicates that a major contributor to the high operating costs incurred by mid-size carriers is the inefficiencies resulting from their heavy dependence on paper-intensive processes. This paper examines the cost disadvantages...
that this creates for mid-size carriers in the US life insurance industry due to a lack of economies of scale. It explains how mid-size carriers can benefit from document management and workflow technologies that can reduce manual effort and paper-intensity even in the context of a smaller scale of operations.
Demographic changes, channel optimization pressures, changing compliance environment and increasing competition are forcing insurers to increase the pace of product innovation to meet their growth and profitability objectives....
This paper examines the causes of product introduction inefficiencies and discusses approaches to improving capabilities to achieve rapid product introduction.
ModernizationLegacy systems supporting the insurance industry burden it with high operational costs, inflexibility, inadequate technical support and incompatibility with newer systems. Many are inefficient standalone systems that inhibit rapid introduction...
of new products and changes to business workflows. Modernizing these legacy systems can enable significant transformation and offer a competitive advantage to insurance companies. Infosys' Insurance Modernization Solution provides a comprehensive set of business and technology components that enable you to achieve this goal faster, better and more cost-efficiently.
Investments in field and carrier-based technologies have not been able to significantly reduce the number of manual touch points and improve risk profiling in the insurance processes. Revamping processes and leveraging technology for enhancing...
operational efficiency, managing risk better and raising the productivity of people and channels are imperative for profitable growth.
Regulatory ComplianceRegulators worldwide are focusing on insurers' solvency and capital adequacy. In its effort to create a solvency regulation framework which is more tuned to the insurers' actual risk exposures, the European Commission...
has put together Solvency II - a risk-based approach to solvency regulations. Insurers are expected to comply with Solvency II regulations by 2010. The paper compares Solvency II to Basel II, the recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision and discusses points of convergence. Also, noting that most of the traditional insurers have a long way to go before Solvency II compliance, the paper discusses the finer elements to be ironed out in the Solvency II framework before it is rolled out.
Copyright © 2007 by A.M. Best Company, Inc. All Rights Reserved. Reprinted with Permission.