A recent study carried out by Novarica showed that life insurers are focused on speed to market, citing it as the number one capability that IT is expected to deliver. But what is speed to market?
According to a recent article by Aaron Herrmann, sales and marketing at Cover-All, speed to market is a buzzword that insurers use without grasping its tangible characteristics.
Aaron explains, “Any technology that claims to deliver speed-to-market must be able to significantly, and positively, impact current product definition workflows, project duration from kick-off to go live, and the number of resources and hours necessary to successfully implement a solution.”
The number one measure of a speed to market solution involves measuring baseline values to allow for a comparison after implementation. A speed to market solution should reduce resources, associated costs, and allow flexibility to adjust to market changes more quickly.
Technology acts as an inhibitor of business transformation, with 86% of insurers in a recent survey stating that they are crippled by legacy IT issues. Traditional insurers are struggling to keep up with new market entrants that have the most up to date systems in place at the onset. Updated technology allows insurers to respond to changes in the market more quickly.
Updated technology can also improve business processes through automated workflows. Automation improves claim-processing efficiency, and reduces the claim-processing cycle time. These improved processes result in improved customer service, which is valuable to any life insurance company.
Resources and Associated Costs
The duration of projects can be daunting and companies know the lengthier the process the more costly the project can become. Outlining this process at the project planning stage can detail the length of the project, the resources required, and the total project cost. Setting out and agreeing on these details allows each party to know the finer details of the project plan. Implementing and testing a system takes time and resources, so the less time it takes, the more beneficial this can be for the company.
Obviously not all projects will run smoothly as initial requirements may change, unexpected glitches are found, or testing can take extra time. The scrum methodology can help to eliminate these delays. The project is run in stages, ensuring all team members are up to date with the project, and the project is reviewed regularly to ensure completion by the specified date.
Before deploying a new system, ensure it offers something of value to your company, whether it’s to improve business processes, increase claim-processing efficiency, or to update existing technology. Knowing your objectives before embarking on a new project will ensure you align your goals and objectives to achieve the desired result.
To improve speed to market, ClaimVantage offers a standard out of the box solution, delivering industry best practice for claims’ operations. The software is also configurable, taking into account your individual business needs. To learn more contact us today.