Insurance technology and operations challenges: Solving a $400bn+ Problem
Insurance technology and operations challenges
Firstly, the Insurance industry faces insurance technology and operations challenges, surpassing $400 billion. This is in terms of Technology and Operations spending globally. These expenditures pertain to essential processes within the realm of Insurance, yet lack differentiation for Carriers.
While this issue is prevalent across all Insurance sub-sectors, it is particularly pronounced within Commercial & Specialty Property and Casualty (P&C) insurance.
Major Areas of Spending
Essential Processes Affected
Secondly, the insurance technology and operations challenges encompass a range of aspects.
Such as Underwriting Support, Claims Operations support, Billing & Collections, Catastrophe Modelling, and Exposure Management.
Factors Contributing to the Challenge
Indeed, this challenge is multifaceted, attributed to the intricate and non-standard nature of Insurance products. A manual trading process between Intermediaries and Carriers relying heavily on unstructured data. Within divergent regulatory demands across geographical regions and numerous small teams in Carriers’ back offices. Each team holds a level of expertise that complicates the attainment of economies of scale.
Complications in Processes
Uniqueness Across Carriers
These processes tend to be needlessly unique to each Carrier, despite the fact that they all perform similar functions with minor variations.
Legacy Technology and Collaboration Issues
This complication is further exacerbated by legacy technology. Which is a disjointed collaboration between IT and Business, resource-strained IT departments, and escalating IT expenditure merely to maintain existing systems.
Impact on the Insurance Industry
Profitability Concerns
These dynamics exert a significant impact on the Insurance industry. They affect profitability considerably, both due to expense implications (amounting to over 30%) and the inability to select appropriate risks with optimal terms. Results thereby impacting the loss ratio.
mea’s Approach to the Challenge
mea was established with the core objective of resolving this industry-wide challenge.
Their approach involves merging seasoned Insurance experts with extensive experience across critical functional domains. Withe the addition of world-class technology talent. This collaboration yields technology solutions that wield a substantial positive influence on the industry.
Technology Solutions and Principles
Basically over the past decades, mea has witnessed the Insurance sector investing in technology solutions that do not achieve their full potential. Above all, excessive customization contribute to technical debt, amplifying IT operational costs and resulting in unclear business justifications and small returns on investment.
mea’s technological solutions are guided by pivotal principles. They prioritize minimizing unnecessary customization. If a process can be executed uniformly across multiple Carriers at a fraction of the cost, they pursue that route.
Focusing on Integral Processes
Specifically, their focus centers on processes integral to the functioning of the Insurance sector, especially those that remain predominantly manual and incur substantial expenses.
Designing Holistic Solutions
Undeniably their solutions are designed holistically to be as plug-and-play as possible, encompassing pre-defined end-to-end processes and standardized industry-wide, process-specific data models. These solutions are designed to be enterprise-ready and globally applicable.
Execution of MEA’s Vision
While mea gradually delves into their execution of this vision, it begins with the resolution of the Submissions process within the Commercial & Specialty P&C domain.
Global Adoption and Impact
Additionally, as a leading software solutions provider in the Insurance industry, mea’s solutions have been widely embraced in the Commercial & Specialty P&C sector, spanning from top-tier global providers to emerging startups. With a global presence, mea’s solutions are already operational in over 17 countries across North America, Europe, Middle East & Africa (EMEA), and Asia-Pacific (APAC).
