Transforming the Insurance Industry: Solving a $400bn+ Problem
The Insurance industry faces a substantial challenge, surpassing $400 billion, 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.
The areas of spending encompass a range of aspects such as Underwriting Support, Claims Operations support, Billing & Collections, Catastrophe Modelling, and Exposure Management. 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, divergent regulatory demands across geographical regions, and numerous small teams within Carriers’ back offices. Each team holds a level of expertise that complicates the attainment of economies of scale.
These processes tend to be needlessly unique to each Carrier, despite the fact that they all perform similar functions with minor variations. This complication is further exacerbated by legacy technology, disjointed collaboration between IT and Business, resource-strained IT departments, and escalating IT expenditure merely to maintain existing systems. These dynamics exert a significant impact on the Insurance industry, affecting profitability considerably, both due to expense implications (amounting to over 30%) and the inability to select appropriate risks with optimal terms, thereby impacting the loss ratio.
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 with world-class technology talent. This collaboration yields technology solutions that wield a substantial positive influence on the industry. Over the past decades, MEA has witnessed the Insurance sector investing in technology solutions that do not achieve their full potential. Excessive customization and uniqueness contribute to technical debt, amplify IT operational costs, and result in unclear business justifications and meagre 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. Their focus centers on processes integral to the functioning of the Insurance sector, especially those that remain predominantly manual and incur substantial expenses. 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.
MEA will gradually delve into their execution of this vision, beginning with the resolution of the Submissions process within the Commercial & Specialty P&C domain. 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).
