We live in a hyper-digitalized world, where customer and consumer expectations increasingly define the way companies should be doing business with them. Transparency, Speed, and Convenience paired with Simplicity have become the standard because companies like Amazon or Netflix have set new standards in these categories. The same is valid for insurers and their engagement with insurance customers.
This new environment requires the adoption of new, innovative technologies throughout the insurance lifecycle. Insurers need to improve their engagement and the experiences for any stakeholder in the insurance lifecycle, for policyholders, for agents and for their employees to name a few. At the same time, they need to respond quicker to evolving market conditions and changing customer requirements and be able to adapt and launch new or adjusted products faster. While these business imperatives are calling for more business agility, IT needs to increase their agility as well. They need to manage the total cost of ownership of their software systems, integrations and related upgrades while digitizing every insurance process. IT needs to enable the business through IT innovation driven by embedded digital solutions, advanced data and analytics and AI and integrate sophisticated insurtech solutions to enhance the insurance value chain.
And this is where an approach running insurance core systems in a self-managed mode is heavily challenged to keep up with the necessary pace of innovation. In a self-managed environment, the insurer himself has the burden of non-value-added tasks like managing infrastructure, security, middleware, and upgrades. Complex upgrade projects and custom configuration lead to slower innovation cycles, longer time-to-market and thus it is harder for an insurer to compete.
Insurers who consider running their core systems in a Software-As-A-Service (SaaS) model gain more agility and flexibility and can focus increasingly on innovation because all non-value-added tasks mentioned before are being transferred to the responsibility of the service provider hosting and running the software for them.
The question “Make or Buy” changes towards the question “Buy or Subscribe”.
This is where we at Guidewire see and define the next wave of digital transformation in the insurance industry where insurance is going to be delivered in a cloud-led model. Guidewire already led the first wave of IT transformation in insurance by providing standard core systems that insurers can trust and replace old and outdated legacy technology. Now with our cloud-native innovation platform for the insurance industry, we are leading the next wave of IT transformation in insurance and enabling boundless and continuous innovation for insurers as they can benefit from new innovative technology and functionality in a much quicker and easier way without having to worry about software upgrade projects or provisioning and maintaining infrastructure. IT can act as an innovation enabler for the business and the insurer can heavily focus on its core competencies, optimize operational efficiency and improve customer satisfaction.
Guidewire InsuranceSuite delivered in a SaaS model via Guidewire Cloud will help insurers to engage with their customers through personalized, omnichannel experiences and empower agents to deliver simplicity and convenience.
Insurers will be able to innovate continuously on a cloud-native platform that will be enhanced at least twice a year. And insurers will have the ability to grow their business by increasing efficiency across their claims and policy lifecycles through higher automation and embedded analytics utilizing modern data and AI.
In summary, a SaaS approach for insurance core systems will enable insurers to innovate continuously, scale their systems in step with their growth ambitions and operate securely with a platform for boundless insurance innovation.