The Game Has Changed. Why Haven’t Insurance Companies Adjusted?

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19 September 2011


  • Actually, the West Coast Offense was based upon different elements introduced decades earlier by Coach Paul Brown and the Cleveland it really isn't new.

    IMO, I think IT persons could use a little more humility and own up to how they created the situation in insurance. For decades IT really did not come close to living up to the greatest expectation; that automation would drastically reduce expenses. I believe that early IT solutions often overpromised and under-delivered in various areas as insurers tried to incorporate it into their operations.

    A lot of valid points are made in this article, but perhaps it would be far more productive to discard the admonishments and focus on how current solutions may actually live up to their performance promise. If insurance companies lack faith in technology; doesn't much of the responsibility lie with those preaching IT's dogma?

  • Change is the essential component of survival and enhancement of business. technology is definitely the game changer but insurers need to adopt "customer first" principle. Only then, the technology will enhance business and trust. In INDIA, we had a catastrophic flood situation in one town(Gorakhpur in Eastern U.P.) and as many as 55 claims were settled by one surveyor & adjuster ( myself) within 35 days.

  • Can't say I agree entirely. The game hasn't changed, just the coverage. Insurance (I'm talking general here) hasn't really changed in a hundred years. Sure, what's being covered has progressed but it's still the same basic risk vs reward game. The only real changes have come in how it's delivered. Technology can deliver you a slicker marketing package and better access, but it won't deliver you better business practice.
    Throwing technology at your problems will make a software companies and IT consultants wealthy, and that’s money hard earned by your company. Before you start parting with that hard earned you need to work out where your future business opportunities sit, and then work out the best way to reach them. Sometimes putting your head into cloud technology might just obscure your view.

  • Thanks everyone for the responses. Couple of comments to the replies.

    The current complexity and legacy system environment that exists today is the joint responsibility of IT and Business. Neither one can point the figure at the other as each is equally guilty of the current situation. It will take a business lead, business-IT partnership to drive forward to better pastures.

    The game of delivering automated solutions has changed. Newer, more modern solutions are configuration-based, as opposed to development-based. Business is taking a larger role in development and maintenance, as it should. SOA is allowing the focus to return to business models and business processes, which is where it belongs. SOA is an IT solution to business needs, not a business solution. (See my BOA report.) Carriers are more focused on policy holders and self service than ever before. STP is becoming more a norm than a dream, even for small commercial new business. While "insurance" itself has not changed much, the automation of the processes and intelligent decision making and customer self-service are new from an industry perspective.