Three Tech­nol­ogy Trends Malaysian In­sur­ance CIOS Should Be Aware Of

THE IN­SUR­ANCE IN­DUS­TRY IN MALAYSIA WILL FACE A NUM­BER OF CHAL­LENGES THAT CAN LEAD TO DRA­MATIC CHANGES OVER THE NEXT FEW YEARS. DE­TAR­IF­FI­CA­TION IN MO­TOR AND FIRE PROD­UCT LINES WILL AL­LOW IN­SUR­ERS TO DE­SIGN AND PRICE THEIR PROD­UCTS DIF­FER­ENTLY.

Insurance - - FEATURE - Text Juer­gen Weiss | Man­ag­ing Vice Pres­i­dent | Gart­ner

This is likely go­ing to in­ten­sify the com­pe­ti­tion, lead to mar­ket con­sol­i­da­tion and in­crease pres­sure on pre­mium rates as well as prof­itabil­ity. In ad­di­tion, Bank Ne­gara con­tin­ues to pro­mote mar­ket trans­parency with its plans to es­tab­lish an on­line prod­uct ag­gre­ga­tor for the coun­try’s life in­sur­ance mar­ket to foster in­sur­ance pen­e­tra­tion and com­pet­i­tive­ness. The up­com­ing ASEAN (As­so­ci­a­tion of South­east Asian Na­tions) will in­ten­sify com­pe­ti­tion even fur­ther by es­tab­lish­ing a wider in­sur­ance mar­ket in the re­gion. Gart­ner is con­vinced that tech­nol­ogy plays a cru­cial role in ad­dress­ing th­ese chal­lenges. From a strate­gic per­spec­tive, we be­lieve that busi­ness and IT lead­ers in the Malaysian in­sur­ance in­dus­try will need to fo­cus on at least three pri­mary im­per­a­tives in or­der to main­tain ex­ist­ing prof­itabil­ity lev­els and re­main com­pet­i­tive in this mar­ket: 1. They will have to raise their level of op­er­a­tional ef­fi­ciency by im­prov­ing straight­through pro­cess­ing, achiev­ing bet­ter economies of scale, re­duc­ing fraud­u­lent claims, elim­i­nat­ing pa­per-based busi­ness pro­cesses and pro­vid­ing bet­ter self-ser­vice ca­pa­bil­i­ties to cus­tomers, agents and bro­kers. 2. They will need to evolve from a pro­duct­cen­tric busi­ness strat­egy and IT ar­chi­tec­ture to­wards a cus­tomer-cen­tric ap­proach which al­lows them to raise cus­tomer sat­is­fac­tion, to know and bet­ter ad­dress cus­tomer needs, to re­duce churn, to in­crease the fre­quency of in­ter­ac­tions with their cus­tomers and to lift cross- and up­selling rates. 3. They will have to be­come more ag­ile to re­spond faster to chang­ing mar­ket con­di­tions and chang­ing cus­tomer re­quire­ments, to pi­lot new tech­nolo­gies and busi­ness mod­els, to reengi­neer ex­ist­ing busi­ness pro­cesses and to di­ver­sify sales and ser­vice chan­nels. There are a num­ber of tech­nolo­gies that can con­trib­ute to th­ese strate­gic im­per­a­tives and CIOs will need to care­fully as­sess their pri­or­i­ties by ap­ply­ing port­fo­lio man­age­ment tech­niques such as Gart­ner’s Strate­gic Tech­nol­ogy Map. This method­ol­ogy will al­low in­sur­ance IT lead­ers to eval­u­ate and clus­ter dif­fer­ent tech­nolo­gies by their con­tri­bu­tion to in­crease pro­duc­tiv­ity, to raise cus­tomer ex­pe­ri­ence and to meet strate­gic re­turn on in­vest­ment con­sid­er­a­tions. Based on Gart­ner’s ex­pe­ri­ence, there are at least three tech­nol­ogy trends that play a ma­jor role in ad­dress­ing the three strate­gic IT pri­or­i­ties of in­sur­ance CIOs: Ad­vanced an­a­lyt­ics, the In­ter­net of Things (IoT) and bi­modal IT.

AD­VANCED AN­A­LYT­ICS

Ad­vanced an­a­lyt­ics in­cludes pre­dic­tive and pre­scrip­tive an­a­lyt­ics as well as big data ar­chi­tec­tures and more so­phis­ti­cated in­for­ma­tion man­age­ment prac­tices. In­sur­ers need to make in­for­ma­tion easy to un­der­stand, us­ing new vi­su­al­i­sa­tion tech­niques to en­able in­ter­pre­ta­tion and fur­ther anal­y­sis by in­di­vid­u­als who do not nec­es­sar­ily have back­grounds in sta­tis­tics. This de­mands new tools with ad­vanced vi­su­al­i­sa­tion for non-power users. Vi­su­al­i­sa­tion should be in­tu­itive and easy to use. For faster de­ploy­ments, es­pe­cially by small-to­mid­size in­sur­ers, off-the-shelf con­tent may be needed. The need for new data is also cre­at­ing new tech­nol­ogy de­mands — es­pe­cially for tools that sup­port big data. The use of big data plat­forms may be re­quired for in­sur­ers do­ing large-scale telem­at­ics pro­grammes, those want­ing to do com­pre­hen­sive cus­tomer in­tel­li­gence (for ex­am­ple, bring­ing in un­struc­tured so­cial or be­havioural in­for­ma­tion) or those con­duct­ing new types of anal­y­sis that in­clude un­struc­tured data. Gart­ner be­lieves that in­sur­ers will have to ac­quire new skills — by the IT depart­ment and by the busi­ness. Data sci­en­tists are of­ten cited as an un­der­de­vel­oped skill in the in­dus­try. Fur­ther­more, CIOs should en­sure that their IT de­part­ments have the right com­pe­ten­cies on en­ter­prise data plat­forms and around data/ in­for­ma­tion ar­chi­tec­tures. It may also be nec­es­sary to es­tab­lish a cen­tre of ex­cel­lence (COE) around cer­tain data or an­a­lyt­i­cal plat­forms. In the long term, BI and an­a­lyt­ics rep­re­sent a core re­quire­ment for in­sur­ance suc­cess. CIOs need to en­sure that the right en­vi­ron­ment is in place to sup­port emerg­ing busi­ness de­mands and even new busi­ness lead­ers, such as the chief data of­fi­cer.

...there are at least three tech­nol­ogy trends that play a ma­jor role in ad­dress­ing the three strate­gic IT pri­or­i­ties of in­sur­ance CIOs: Ad­vanced an­a­lyt­ics, the In­ter­net of Things (IoT) and bi­modal IT.

Text Juer­gen Weiss | Gart­ner

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.