…the team (can) take advantage of the new technology to a full extend by creating and offering exciting, new products, dynamically changing the existing portfolio and reacting to market changes in a matter of hours and days
This article is the second installment from The digitalization of the insurance industry: Change is about to happen, but how?
In the first article from these series we discussed the transition to an entirely new, next-generation specialized information system as a way to digitalize an insurance company. We recognized that such an approach is hardly possible for big insurance companies, so in this part we are focusing on the launch of a completely new line of business or a new brand on top of a next-generation information system as the start of the digitalization in an insurance company.
The launch of a new line of business or a new brand on an entirely new software solution seems to be an approach a lot of both smaller and bigger insurance companies like and are currently discussing. Instead of trying to transfer their existing business to a new solution, they opt out to launch their new insurance line or in some cases an entirely new insurance brand on top of a solution from a new generation. The idea behind it: they can take advantage of all benefits the new technologies bring, without having to go through a complicated decision making process at first. Of course, the benefits are experienced by their new business, while their main existing business is still limited by the capacities of their old IT infrastructure. Still, this approach delivers hard evidence to the decision makers in the insurance company about the results achieved by the introduction of technology innovation. Thus, it can in a next step ease the decision making cycle for a complete transfer to the new insurance information system. In the cases, when an insurance company decides to launch a separate brand, it also enables the dedicated team to be much more flexible and take advantage of the new technology to a full extend by creating and offering exciting, new products, dynamically changing the existing portfolio and reacting to market changes in a matter of hours and days, not months even years as the industry currently does.