Part 3 in the Series “6 Essential Characteristics of a Core Insurance Platform“
When Bruce Lee famously said, “Be like water,” he was referring to a person’s ability to adapt to changing conditions. However, he may as well have been talking about the technological backbone of insurance organizations who must adapt and change quickly in response to market conditions. The ability of insurers to quickly adapt can help lower costs, increase revenues, and improve the customer experience. Unfortunately, it is difficult for an organization to be agile when the underlying software is rigid in design, requires vendor services to make modifications, or has fallen technologically behind and is obsolescent. A modern core insurance solution is empowering, thoughtful in design, and leverages advanced future-proof technology to support the flexible configuration needs of demanding insurance organizations.
Quickly Respond to Market Changes
A key advantage of flexible configuration is the agility it provides in responding to market dynamics. In an industry where change is constant, insurers need software solutions that can swiftly evolve with them. Consider a scenario where there is a sudden regulatory change that impacts the way policies are structured. With a rigid system, you may be forced to undergo a time-consuming and costly process of rewriting a portion of the software which requires schedule coordination, expected costs, and long timeframes to deploy. However, when a system is truly flexible with regards to its configuration the handcuffs are unlocked and you can seamlessly make adjustments to policy structure, coverage terms, and pricing models, further enabling your organization to meet new market demands on-the-fly and at a low cost.
Reduce Vendor Dependency
Your software vendor should be your partner, however an over dependence on them is restricting and suffocating for your business. To remove this bottleneck, you must be empowered to self-service your core system and remove the strong dependency on the vendor. This is accomplished by the use of technology platforms that are designed for such, provide tools enabling customer modifications, and a product that is flexible in regards to advanced configuration.
Support Low Code
Most insurance organizations do not want to talk about code at all, as this is seen as the vendor’s job in the relationship (and in fact, absolutely true!). However, modern advancements allow citizen developers to participate in the improvements which can be made to a solution using ‘low code’ (or even ‘no code’!) to modify field layouts on screens, add new fields for data collection, and so much more. This democratization of development empowers customers to self-serve and further enhances collaboration between IT and business units, fostering innovation and reducing the time-to-market for new features.
Embracing the Future
As we navigate the ever-evolving landscape of technology, the significance of flexible configuration cannot be overstated. It is the key that unlocks a future where insurers can swiftly adapt to market changes, reduce dependency on external vendors, and embrace the efficiency of low-code development. The ability to configure software flexibly is not just a feature; it is a strategic enabler that propels businesses toward sustained growth and innovation.
In the ever-shifting currents of the insurance industry, rigidity is an accident waiting to happen. Instead, choose a system that will allow you to “Be like water.” Embrace a core system that flows with change, allowing your organization to adapt configurations swiftly and meet market demands with seamless agility.
At Spear, we understand that your business needs are constantly changing, and your software needs to change too. We do not believe in rigid one-size-fits-all solutions. We offer flexible core insurance software solutions that flow with your changes and adapt to your current demands.