The insurance industry worldwide is undergoing a significant change accelerated by the financial meltdown and changing demographics of its customer base. In this blog, we will discuss the challenges, approaches and possible solutions to dealing with the transformation that the industry has unwittingly entered into.

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Smarter Organization - Simplify

In my previous blog I mentioned the need for Insurers to  "Simplify", "Collaborate" and "Adapt" to emerge as "Smarter Organizations". I would like to elaborate on the need to "Simplify" in this blog.

Insurers are entering new markets and geographies through acquisitions and setting up their own offices. Insurers in new geographies have initially set up their own enabling functions like IT, HR, finance etc to allow organizational agility instead of relying on corporate office. However as the organizations grew in each of the geographies the siloed nature of the support functions has increased the cost through duplication of efforts, infrastructure and processes. Simplification reduces risks and frees up cash.

Few insurers have realized the need to Simplify their operations to show productivity and reduce costs. Few initiatives for simplification include

1) Creating single digital nervous system for key functions such as HR & Finance to enable faster flow of information
2) Setting up of shared services structures for Infrastructure across subsidiaries
3) Single instances, server consolidation and virtualization
4) Integrated planning, performance management processes across entities

Increasingly Corporate CIOs are given the responsibility to reduce the IT costs by simplifying the underlying structures, processes and systems. Such a transformation is possible only with the direct support of a CEO and CFO.

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