07 Aug How to increase insurance information systems agility
Unexpected major loss events, like the Canterbury and Kaikoura earthquakes, are sudden and cause immediate disruption. In the aftermath, insurance companies face enormous pressure as thousands of people, organisations and systems struggle to process claims and resolve individual dramatic situations.
Information systems can either help insurance companies to overcome these challenges, or make it harder for everyone involved. Automating simple information processing and management tasks can free up valuable man hours, empowering teams to focus on high value tasks.
Insurers face three IT strategy options:
- Buy an entirely new system: an opportunity to introduce best practice, but also demanding considerable investment, time delay and process reengineering in the business.
- Build a customised system: develop a system customised to an insurance company’s specific needs, but with the cost and risk inherent in custom development projects.
- Enhance existing systems. Integrate, automate and extend existing systems to provide the quickest and most-cost effective route to agile decision-making.
After the Kaikoura earthquakes, IAG decided to implement the latter.
“To be able to respond as quickly and effectively as possible to our customers is crucial,” says Mark Webley, Technology Services Business Partner at IAG.
“In this kind of event we needed to gather a lot more specialist information, such as foundation or retaining wall damage for example, than in a normal claim event.
With a disaster, you don’t know what the requirements might be, and the ability to monitor, measure and deliver in a quick manner is what we want to achieve for our customers.”
To learn more about the issues with insurance information systems during major loss events, download our white paper, ‘Increasing agility in significant loss events: Insights for insurance leaders‘.