In the last few years, traditional and conventional methods have been applied in an attempt to increase the level of efficiency in the insurance industry.
However, mounting pressure on the international insurance industry, caused by deregulated markets, increasing consolidation due to the rise in the number of M&A processes and steadily increasing globalization, requires innovative solutions.
How can an insurance company or an insurance group adequately respond to the increasing challenges today? Which measures must companies take in order to be able to tackle these constantly changing challenges and which measures would give companies a better chance of grasping new opportunities in the long run?
These questions were presented by managers of the Greek insurance industry in Athens at the end of May, 2007...
The wind of change in the European insurance industry has put "Industrialization" on the agenda, both as a possible solution and as a chance for the future. Insurance companies face the challenge of having to optimize their value creation chain and, at the same time, having to modernize their traditional IT concepts. The key to success and continuing growth is the implementation of integral back-office systems which not only allow insurance companies a higher degree of flexibility, but which also allow for a faster time to market. This enables the reduction of the costs and effort linked to a holistic IT, which, in turn, frees capacities to concentrate on the core business.
In November 2006, the long-standing cooperation partners Christoph Thiel (Managing Director, ALICE Software Service GmbH) and Jean Marie Bollen (Managing Director, Hamburg-Mannheimer N.V.) invited Belgian insurance companies to an event at the premises of Hamburg-Mannheimer in Brussels. In addition to the Belgian insurance association Assuralia, represented by Mr. René Dhondt (Member of the Board of Directors), further interested parties, such as Winterthur, Mercator and Aviabel, were present and were informed and briefed on the "Trends, Challenges and Solutions in the Insurance Economy".
Recognizing and utilizing changes
Wim Vanderstraeten (Manager and partner of PKF Consulting MCS, Belgium) opened the event by presenting an overview of the trends and challenges facing the insurance industry. "The market is developing rapidly and the competition is continuously improving and adapting. The time available to react to these changes is decreasing. Therefore, the success of an insurance company is based on its degree of flexibility". The correct choice of tools (e.g. Six Sigma) and systems (e.g. integral standard software) for leveling and controlling changing business processes will, in the opinion of insurance experts, be one of the decisive factors for the long-term success of an insurance company.
Packaged complete solution
Mr. Jef Glassée (Head of IT, Hamburg-Mannheimer, Belgium) held a presentation on the topic of using standard software and the specific requirements of a standard software solution for an insurance company. HMB started their implementation of ALICE in 2001 and in 2002 they were already able to create their first "Life policy" in their new back-office system. In rapid succession, legacy data was migrated to the new portfolio system and the product range was gradually expanded. Since 2003, all life insurance and non-life insurance products of HMB have been listed in the portfolio management system ALICE. HMB is now in the position, with the support of ALICE, to create new products within a few weeks and place them on the market. The software ALICE is currently used in 14 European countries with over 20 installations in operational use.
Multiple distribution channels as a new opportunity
In addition to agents and brokers, the insurance industry is increasingly making use of multiple distribution channels in order to ensure sustained growth. The capability to adapt to the changing market requirements, for example, direct Internet sales, is an absolute necessity and, therefore, increases the pressure on what such a software must be able to fulfill. Ms. Rosinda Heix (Senior Consultant, ALICE Software Service GmbH) illustrated the advantages of an integral portfolio management system using an Internet solution as the platform for multiple distribution channels for insurance companies. In her presentation, Ms. Heix emphasized the importance of upgradeable software solutions which can be continuously enhanced by integrating new technological functionalities.
International IT strategy with only one solution
In the discussion which followed the presentations, the participants debated the future trends of industrialization and the resulting consequences. According to Dominic Testrut (Director Business Development, ALICE Software Service GmbH), it is crystal clear that there will be a similar standardized development process for the value creation chain of insurance companies, as once was the case during the original industrialization of production processes.
The positive feedback from this event proved that not only the motto, but also the choice of presenters and their presentations were fully appreciated by all participants. ALICE Software Service GmbH will, therefore, organize further events in the countries of their customers in order to promote the dialog between insurance companies.