Once we discover the technique of redesigning the business process as building blocks with a service-oriented mindset, transformation is next. Let’s imagine a world set apart from the competition that increases value, and enhances customer and employee experiences. How do we define the process and create the experience?
The way is to flip the organization and put the end-to-end process and insurance value chain on its side. Rather than thinking in terms of systems and applications and the old insurance value chain, think in terms of what an employee does to complete the process. Look at it from a different viewpoint: the customer,—clearly define through their eyes, their wants and needs. To do this, insurers must rethink and even re-experience.
·Internal operations: With the current economic environment, profitability can be a challenge; insurers must have cost-effective distribution channels; superior customer service with precise product pricing and servicing. Business processes must support flexibility while being efficient yet effective.
An underwriting example: Risk appetite and risk selection processes can quickly change based on the volatility of the market environment. There is a need to enhance risk selection and integrate with straight-through-processing and exception handling all with an eye towards precision pricing in real-time, adjusting to dynamic marketplace conditions.
A claims example: Claims payment authorization level adjustments can be made in real time based on an incoming natural disaster. Claims processing must have the flexibility to scale claims operations and accelerate payment processing before, during, and after a hurricane or flood.
These scenarios are great examples of the need for dynamic processing and the ability to respond quickly to be competitive and win the business in today’s marketplace. And of course, today’s customers expect insurers have this capability and adjust seamlessly in real time.
With the right real-time intelligence and flexibility, being able to adapt and adjust to various customer service levels based on level of risk, wealth, intimacy, and touch required to fulfill client needs and demands is a differentiator and competitive advantage.
This is an excerpt from a recent whitepaper “Insurance: Realizing the Full Potential of Change Shifting the mindset to create dynamic business models by leveraging BPM and SOA as true enablers” authored by Deb Smallwood & Cindy Maike, Co-founders of Smallwood Maike & Associates and published and sponsored by IBM. Contact Deb Smallwood at dsmallwood@smallwoodmaike.com for a copy.
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