Disruption in insurance: not a matter of ‘if’ but a matter of ‘when’January 29, 2018
In an interview on the digital insurance agenda, AXA Chief Marketing Officer and Chief Digital Officer Amelie Oudea Castera talks about the challenges of delivering the Digital Insurance Agenda, the disruption of insurance, and the challenges & success factors of teaming up with Insurtechs.
As a former world champion, Castrera compares the insurance business with a tennis match: “On top of technical skills, insurance requires attention to every detail, a mix of action and anticipation, a capacity to work over the long-term and a lot of technical expertise!”
According to Castrera it is not a matter of ‘if’ there will be a disruption in the insurance industry but a matter of ‘when’. Teaming up with Insurtechs is essential in order to keep up. In her opinion, the greatest challenge for incumbent insurance companies in this cooperation is the cultural gap between the startups and large corporate worlds, including for example the difference in speed of decision-making or the discrepancies in terms of focus (growth vs. profitability).
What we, as legacy transformation experts, find is that legacy environments are often a huge bottleneck that negatively influences exactly those areas. When IT organizations focus on keeping business-critical legacy systems running, valuable resources and huge budgets are taken away from innovation, integration and cooperation.
The moment they decide to get off the mainframe and migrate their legacy applications there is a clear shift in focus which opens the door to innovation. A great example of this is VIVAT, this large insurer encompasses multiple insurance brands (e.g. Reaal Dier & Zorg, Zwitserleven, Reaal, Route-Mobiel and Zelf) and a sustainable asset manager (ACTIAM).
Over the past decades, VIVAT had developed its core insurance systems using the Unisys EAE/LINC programming language running on Unisys Libra 690 mainframes. They found that this environment burdened them with high costs and limited flexibility. After they migrated 15 different applications, of which 8 business-critical, they not only achieved an immediate reduction of 70% on infrastructure and operational cost but there are also new functionalities available that help them realize their growth and innovation ambitions.
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VIVAT nominated for Celent awardNovember 30, 2017
VIVAT, Asysco and TCS are nominated for the prestigious Celent Model Insurer Award.
Every year for the past 12 years, research, advisory, and consulting firm Celent recognizes excellence in technology throughout the insurance and banking sectors through the Model Insurer Awards and Model Bank Awards.
The VIVAT mainframe migration project is nominated for the Model Insurer Award in the Legacy and Ecosystem Transformation category.
Celent’s analyst team will be judging the entries and selecting winners in the coming months.
Each submission is evaluated based on the following criteria:
1. Demonstrable business benefits
2. Degree of innovation
3. Technology or implementation excellence
We believe the VIVAT migration project has a good chance of winning.
Awards will be presented at Celent’s Innovation and Insight Day on the United States east coast in April.