Digital transformation & process automation

Many insurance companies are still operating systems and applications with ageing technology - including mainframe-based core systems. The care, maintenance and further development of these systems is becoming increasingly difficult. There is often a lack of specialised personnel for the technologies and operating the infrastructure is complex and expensive. A one-to-one replacement of the core systems with a technology update is usually not the best solution - instead, modern application platforms and cloud technologies should be analysed and used.

The transition of a system landscape to the cloud is not a task that can be tackled from a technical perspective alone. Specialists from different subject areas must also be involved. A sensible tailoring of the specialist domains is a prerequisite for successful distribution to the technical artefacts of a future application and, last but not least, regulatory challenges must be taken into account during implementation. All findings must be incorporated into an overarching cloud strategy that fits in with the corporate strategy. After all, not every application fits into the cloud.

In the past, insurers have often replaced customer-centric systems, which has led to a dramatic technological disconnect between customer and legacy systems. This makes an end-to-end customer journey impossible and end-to-end process handling slow. In addition, downstream processing requires specialised personnel who understand the inventory systems and are able to navigate the long-established processes. Manual processing is often still indispensable.

However, efficiency in processing and operations is crucial in order to meet customer expectations. Appropriate services such as the use of trained artificial intelligence in the pre-processing of customer enquiries can provide efficient support here. Robotic process automation (RPA) can be used to integrate existing systems into automated process handling: The technology supports the transformation by automating data processing in various insurance areas - for example, manual data entry in specialised processes, carrying out extensive regression tests when changes are made or manually transferring data between systems.

New business areas are opening up in the insurance industry through the development of marketplaces and ecosystems with customer-centred processes. A prerequisite for participation is the exchange of data in a standardised format and the use of public interfaces. Standardisation initiatives such as BiPRO and Open Insurance are placing new demands on insurance systems. Increasing regulatory requirements such as BaFin's VAIT, FIDA and the German Accessibility Act (BFSG) must also be taken into account and implemented.

In addition to a comprehensive understanding of current requirements, the development of customer-centred services and processes with new interactions, channels and forms of communication is of central importance. The use of artificial intelligence in various use cases will revolutionise insurance processes in the near future - and application landscapes must be prepared for this.

Digitalisation offensives should ensure the compatibility of systems with external services or cloud systems and rely on standardised processes and interfaces. Modernisation projects usually also include changes to organisational structures and processes. To ensure that transformations succeed and are accepted by all those involved, it is advisable to implement and introduce them professionally and to provide accompanying change management (including introduction and rollout management, user and customer information, stakeholder information, customer marketing, migration preparation, etc.).