As insurance players continue to rapidly upscale their technology investments, many companies are inadvertently creating a new and expensive problem. Siloed and underutilized systems, which often require more manual input than the legacy systems they replaced, are a constant frustration. Before investing in more InsurTech, business leaders should be asking how to get the most out of their existing technology.
McKinsey research shows that in the past seven years, the share of technology in total operating costs of property-and-casualty (P&C) insurers grew by 22 percent. The company goes on to suggest that the rapid growth in digital efforts means technology is no longer seen as a cost center but rather an asset that can assist in growth and profitability if properly managed.
And while McKinsey points out that its research clearly shows that companies that spend more on targeted tech investments outperform their competitors, unless IT leaders ensure that their new systems are properly integrated, the investment may not only fail to meet expectations, but could add to the workload and ineffectiveness of internal teams.
Are You Sure You Are Using All That?
Many insurance leaders have turned to InsurTech to help them stay relevant and competitive. And with tough growth mandates hanging over them, IT leaders have rushed to invest in automated claims processes, mobile bill payments, and other cloud-based application lead processes.
In fact, the SaaS industry as a whole has exploded over the past five years, with the last two pandemic years exponentially adding to SaaS adoption. Industry figures show a 5x growth in just the last six years with SaaS making up 70% of the average company’s total software use, and enterprise organizations with over 1000 employees using 177 SaaS applications, on average.
However, the more cloud connections that enter the organization, the more complex the management of all the systems becomes, adding a very real threat of strangling data quality and accessibility. What’s more, when systems are not properly integrated, data can become entrapped in silos, systems will sometimes overwrite other systems with bad data, and data can become unavailable, outdated, or even decay over time.
IT leaders have admitted that the challenges of a poorly integrated and managed solution stack are soon felt by their teams and by staff members across the organization. These challenges include:
Connecting Tech is the First Step to Optimizing IT Investments
Insurance produces and relies on huge volumes and varieties of data. What’s more, as the ecosystem of partners grows, companies have to connect and share their data amongst one another.
Ensuring internal systems are connected and sharing the Right Data, with the Right Person, at the Right Time has become one of the biggest requirements facing today’s insurance IT leaders.
Synatic sits at the juncture of a company’s solution stack, connecting disparate systems and allowing a business to unify its technology ecosystem. Synatic helps insurance companies de-risk their existing modernization efforts, providing them with the tools they need to automate data throughout their enterprise. This includes integrating data from core policy management platforms, legacy solutions, and business applications.
Synatic understands that a large part of getting the most out of technology investments requires organizational effort. Most companies find it difficult to use new technology effectively. The learning curve is often steep, and a new application may not work well with the existing systems already being used by the company. Synatic’s Hybrid Integration Platform (HIP) helps to overcome these roadblocks by smoothing out business processes and combining the information and functionality of several applications. Further, Synatic’s built-in Data Warehouse allows for rapid build out of data for reporting solutions such as PowerBI, Tableau, and Qlick.
The result is improved information sharing between departments. In addition, better information management and a clearer vision of data gives management a deeper and more accurate understanding of their business, allowing you to streamline and simplify operational processes.
Most importantly, by getting the most out of existing systems before investing in more applications, insurance leaders are best placed to build on their modernization efforts, realizing genuine ROI on future IT investments. To learn more about how you can get the most out of your solution stack, contact Synatic today.