Digital transformation in action! Zurich DE planning and deploying "One True Core for Digital Insurance"
- Digital Core- straight through & real-time claims processing leads to-
- Open API Architecture available to all channels & internal & external technologies which enables-
- Multi-speed IT- create and deploy faster which makes possible-
- Insourcing key IT Competence for lighter & flexible resourcing which enables-
- Internal incubator & champions to flourish enhanced by-
- Co-operation with Insurtech
Oliver Lauer and his colleagues must be congratulated for this bold approach which should be reflected by higher customer satisfaction (Net Promoter Score), lower Operating Costs and Better Product Planning.
McKinsey recently drew attention to evidence that the early moves in digital transformation win the lion's share of profits.
Zurich DE is one early adopter and Allianz another so it seems other German Insurers had better move fast if they are to remain profitable.
One issue might be the €200 million price tag and another the two year lead-time Zurich mentions.
Luckily new, agile digital platforms are faster and less expensive to plan, implement and deploy.
You can start with one product line or more and start digitizing and deploying in weeks without throwing out current core systems. This means you gain competitive advantage today which gives you time to add the complete product portfolio, other county business units and all processes from FNOL to settlement (including back-office) and be one of the top winners.
See 360Globalnet for an answer and I hear that there will soon be a public announcement of a large global insurer taking this option rather than the slower, more expensive options from the gorillas in the market.
Don't ignore these as every solutions has strengths and weaknesses- they should be shortlisted:- e.g.
Guidewire, Sapient, Backspace, Innovation Group, Hubio
But don't talk too long; get on and start digitising before Zurich leaves you behind in the insurance dust.
'True Digital' because nearly every process is available via digital interaction and because of its new Open API Architecture approach available everywhere and every time. 'One Core' because, independent of the channel used, every user of the Core sees everything and every information instantly and in real time: The agents sees what the customer has done via internet The customer sees what the agent has calculated for him The claims department sees the coverages the coverables of the new customer's contract as soon as the customer has hit the button 'buy' Accordingly the finance department sees in real time all billing transactions The agent can start a process and the customer can finish it and vice versa ...