英文用 AI 打造现代保险企业

CELENT

ThisisanauthorizedreprintofaCelentReportprofilinganapproachfor

insurancecompaniestocreateamodernenterprisetotakeadvantageof

emergingtechnologies.ThisreportwasnotsponsoredbyWorkdayinanyway.ReprintgrantedtoWorkday.Formoreinformation,pleasecontactCelentat

orinfo@

CREATINGAMODERN

INSURANCEENTERPRISE

Howtobuildastrongfoundationtotakeadvantageofemergingtechnology

NandaRajgopalAugust28,2023

CreatingaModernInsuranceEnterprise

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CONTENTS

ExecutiveSummary 3

Introduction 6

Data 9

Cloud 13

Artificialintelligence(AI) 15

Low-Code/No-Code(LCNC)Platforms 18

CoreSystems 20

CorporateSystems 22

Innovation 24

PathForward 26

LeveragingCelent’sExpertise 28

SupportforFinancialInstitutions 28

SupportforVendors 28

RelatedCelentResearch 29

CreatingaModernInsuranceEnterpriseExecutiveSummary

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EXECUTIVESUMMARY

Technologyhasbeenemergingatarapidpaceandisexpectedtocontinueadvancing.Dataanalytics,cloudcomputing,andartificialintelligenceand

machinelearning(AI/ML)—includingtherecentemergenceofGenerativeAI(GenAI)andLargeLanguageModels(LLMs)—alongwithevolutionsincoreinsurancesystems,havebeenmakingsignificantstridesinrecentyears.Customersare

gravitatingtowardnewertechnology,particularlysmartphonesandmobile

devices.Theseadvancesintechnologyareinterrelated,andinsurersneedtothink

differentlytofullybenefitfromthem.Howshouldinsurersadjusttheirthinkingtotakeadvantageoftheseemergingtechnologies?Whatstepsshouldtheybe

takingtocontinuouslytransform,keepingpacewithcustomersandofferingtheminnovativeproductsatafasterrate?Howshouldinsurersbeorganizedtoreap

ongoingbusinessbenefits?

Amongthemanyoptionsinsurerscanpursuetokeeppacewiththechanging

consumerlandscapeandtechnology,thereareseventenetsorkeyfocusareasthatcantransforminsurancecompaniesintomodernenterprisesandhelpthemstaynimbleandadaptable.ThesetenetsareData,Cloud,AI(Artificial

Intelligence),LCNC(Low-Code/No-Code)Platforms,CoreSystems,CorporateSystems,andInnovation.

Wehaveidentifiedsixstepstoundertakeinitiativestoimplementthetenetsto

transformintoamoderninsuranceenterprise(SeeFigure1.).Allthenecessary

groundworkmustbeperformedinStep1,beforeembarkingonamodernization

initiative.Startwithdataandcloud—developastrategy,plan,andexecute.Then,inaniterativeandinterconnectedmanner,identifyopportunitiesandusecasesforAI,upgradeormodernizecoreandcorporatesystems,andutilizeLCNCplatformstofillanyprocessgaps.Keepinnovatingalongtheway,andweavethatintothe

organizationalfabric.Thisprocesswillhelpcreatemoderninsuranceenterprise.

CreatingaModernInsuranceEnterpriseExecutiveSummary

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Figure1:CreationofaModernInsuranceEnterprise

Source:Celent

Dataisattheheartofeveryenterprise.Itisthefuelthatdrivesenterprisesforward,andinsurancecompaniesarenodifferent.Thisshouldbethefirstareaoffocusfor

insurers.Cloudcomesnext.Cloudcomputinghasadvancedsignificantlyfromthe

perspectivesofstorage,tools,solutions,and,mostimportantly,security.Itoffers

numerouspossibilitiesforinsurerstoinnovateandcreateamodernenterprise.If

dataisthebackboneofanenterprise,thecloudprovidesthestructuretoextractthebestvaluefromitsusage.

Artificialintelligence(AI),machinelearning(ML),andtheadventofGenerativeAI(GenAI)andlargelanguagemodels(LLMs)arecreatingnumerouspossibilitiesforinsurancecompanies.Innovativeusecasescanbedeveloped,keepinginmindthetransparencyandauditabilityrequirementsofregulators.

Low-codeandno-code(LCNC)softwaredevelopmentplatformsenablethecreationofapplicationswithminimalcodingorprogrammingknowledge.Thisprovides

insurerswiththeabilitytoinnovatequicklyandaddcapabilitiesthatdonotexist,especiallyinalegacyenvironment.Theycanalsobeusedtofillgapsincurrentortransformedapplications,coveringcoreandcorporatesystems.

Coresystemsaretheapplicationsthatdrivethevaluechainofaninsurancebusinessandsupportend-to-endoperations.Insurershavebeenprogressivelymodernizing

theircoresystemsovertheyears,continuouslyincorporatingchangesaspartoftheirdigitaltransformationefforts.However,someinsurersstillrelyonlegacy-basedcoresystems,whileothersoptforacombinationoflegacyandmodernsystems.Core

systemsmustbeefficient,flexible,andscalabletobepartofamoderninsuranceenterprise.

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Corporatesystemscompriseallthesupportfunctionsneededtorunabusiness

organization.Forinsurerstotransformintoamodernenterprise,theymustkeeptheircorporatesystemsuptodatewithdataandcloudtechnologies.Thisenablesthemtoinnovateandtakeadvantageofemergingtechnologies,becomingagile,competent,andcost-effectiveinsurancecompanies.

Aninnovationcultureneedstobeadoptedaspartofamoderninsuranceenterprise.Innovationhelpstooriginatenewproducts,improveprocesses,drivebetterinsights,andincreasevaluefromdata,cloud,AI,core,andcorporatesystems.

Giventhecomplexnatureofthehighlyregulatedinsurancebusiness,leveragingnewtechnologiesisnotstraightforward.However,byorganizingandfocusingalongthe

linesofthetenetsoutlinedfortransformingintoamodernenterprise,insurancecompaniescanbenefitfromemergingtechnologies.

Thekeytakeawaysfromthisreportare:

•Technologyemergenceisheretostayandwillonlycontinuetoexpand.

•Insurerscanpositionthemselveswellforthefuturebytakingadvantageofnewtechnologies.

•Therearesevenfocusareasthatinsurerscanconsiderfortransformingintoamodernenterprise.

•Mostimportantly,insurersmustbeginbygettingtheirdataandcloudstrategyandexecutionright.

CreatingaModernInsuranceEnterpriseIntroduction

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INTRODUCTION

Insurancecompaniesoperateinaheavilyregulatedenvironment,especiallyinthe

US,whereeachofthe50stateshasspecificregulationsforinsurers.Inlightofthissituation,insurersmustconsidertheseregulationswhenundertaking

modernizationinitiatives.Additionally,therearesignificantdatapreservationmandatestomeetregulatoryandcompliancestandards.Duetothese

requirementsandtheiradherencetoestablishedoperationalpractices,insurershavemostlyremainedinalegacyenvironment.Whilemanyhaveimplementedmoderncoresystems,theyhavecontinuedwithtraditionaloperations.

Withtheemergenceofnewtechnologies,suchasGenAIandLLMs,thematurityofcloudcomputing,andmoderndatamanagementmethods,howcaninsurancecompaniesleveragetheseadvancementstotransformintomodernenterprises?

Tobecomeamodernenterprise,insurersneedtoconsidersevenkeyareas:data,

cloud,AI,low-code/no-code(LCNC)platforms,coresystems,corporatesystems,andinnovation.(SeeFigure2.)Byfocusingonandorganizingtheircompanyaroundtheseareas,insurerscancreateanenterprisethatenablesefficientoperations,

introductionofinnovativeproducts,improveduserandcustomerexperiences,andincreasedrevenueandprofitability.Theseareasareinterconnectedandcanbe

consideredasseventenetsinthemakingofamoderninsuranceenterprise.

Figure2:SevenKeyFocusAreasforModernization

CreatingaModernInsuranceEnterpriseIntroduction

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Data

Enterprisesaredrivenbydata,andinsuranceenterprisesarenodifferent.Withthecontinuedproliferationofdata,itismoreimportanttodaythaneverbefore.

Regulationsalsohaveanimpactondatamanagementandretention.Manydata

managementconcepts,architectures,tools,andstorageoptionshaveevolvedin

recenttimes,requiringorganizationstomaintainacontinuedfocusondata.Dataisoneofthemostimportantbuildingblocksofamoderninsuranceenterprise.

Itisallaboutthedata.

Cloud

ArecentCelentsurveytitled"IsMovingtoCloudWorthIt?"revealedthat93%ofinsurershavealreadyembracedthecloudtovaryingdegreesofsatisfaction,withamajorityexpressinggratification.Cloudcomputinghasfacilitatednumerous

innovations,includingimprovedbusinessandIToperations.Itenablesinsurersto

storeandorganizelargevolumesofdataatlowercostscomparedtotraditionaldata

centers.Additionally,itallowsforrapidandefficientdevelopmentofnewapplications.

ArtificialIntelligence(AI)

AIhasbeeninexistenceformanydecades.However,recentdevelopmentsintechnologiessuchasdataprocessing,cloudcomputing,machinelearning,and

naturallanguageprocessinghavepropelledartificialintelligencetonewheights.ThelatestbreakthroughsinAItechnologyareGenerativeAI(GenAI)andLargeLanguageModels(LLMs).CloudcomputingservesasasolidfoundationfortestingtheseAI

modelsonalargescale.Integratingthesemodelsintotheinsurancevaluechainopensupnumerousbusinesspossibilities.

Low-Code/No-Code(LCNC)Platforms

AnLCNCplatformoffersameanstoquicklydevelopapplicationswithminimalornoprogrammingrequired,explainingthepopularityoftheseplatforms.ManyvendorsprovidingLCNCplatformshaverecentlyemerged.Suchplatformsenableinsurerstoenhancetheircapabilitiesinacost-effectiveandefficientmanner,particularlyfromafront-endperspective.Essentially,utilizingLCNCdevelopmentinconjunctionwith

data,cloud,AI,andotherapplicationsprovidesinsurerswithanaddedcapacitytoinnovateanddeliveranexceptionaluserandcustomerexperience(UX/CX).

CreatingaModernInsuranceEnterpriseIntroduction

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CoreSystems

Coresystems,whichincludepolicyadministration,claims,underwriting,andbilling,lieattheheartofinsurancebusinessoperations.Whileinsurershavemadeeffortstomodernizetheircoresystems,manylegacysystemsarestillinusetoday,particularlyinthelifesector.Evensystemsemployedinmodernizationinitiativessevenoreightyearsagocouldbeconsideredlegacyinlightoftheemergenceofmodern

architectures.Irrespectiveofwhetheraninsurerhasaboughtorbuilttheircore

system(legacyormodern),itmaynotpossesstheflexibilitytoaccommodate

emerginginnovativebusinessneeds.CombiningcoresystemswithLCNCplatforms,

alongwitheffectiveutilizationofAI,data,andcloud,becomescrucial.Inanyscenario,coresystemsremainintegraltoinsuranceoperations.

CorporateSystems

Allthesurroundingsystems,suchasfinanceandaccounting,HR,payroll,CRM,andotherrelatedapplications,constitutecorporatesystemsthatareessentialfor

runninganenterprise.Theyserveasthemainstayofanenterprise—providingthenecessarysupporttoensurethesmoothfunctioningofbusinessoperations—and

mustbekeptuptodatewiththelatesttechnology.Whilecorporatesystemsmay

notprovideasignificantcompetitiveadvantagetoinsurers,theyplayacrucialroleinsupportingcoreoperationsandsystems.

Innovation

Afocusoninnovationiscrucialthroughouttheenterprisetocreatethenecessaryoperationalflexibilitytoadapttochangingbusinessrequirements.Innovation

influencestheothersixtenetsofamoderninsuranceenterprise.Aninsurer’s

enterpriseinnovationgroupshouldincluderepresentativesfromeachoftheothermodernizationtenets.

CreatingaModernInsuranceEnterpriseData

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DATA

Dataisattheheartofeveryenterprise.Itisthefuelthatdrivesenterprises

forward,andinsurancecompaniesarenodifferent.Beinginaregulatedsector,

thereareaddedrequirementsforinsurerstomanageandretaindataforalongerduration.Additionally,propergovernanceandmanagementofdataarecriticalininsuranceprocessessuchasactuarialmodeling,underwriting,andclaims.Thisisthemostimportantofthemodernizationtenets.

Dataexistsinmanyformsacrossinsurancecompanies.Effectivelyorganizing,

governing,andmanagingitinasecuremannerhasbeenachallenge.Thecontinuedproliferationofdataaddstothischallenge.Arenewedfocusanddisciplinefromallareasofaninsurerarerequiredtooptimizevaluefromdata.Newmethodsand

innovativearchitecturesareevolvingtoenablebetterwaysofmanagingdatainrealornear-realtime.Emergingtechnologies,includingcloudandAI,areproviding

much-neededtoolsandsolutionstoaidinthedatamanagementprocess.Can

insurerstakeadvantageofthesenewarchitectures,tools,andsolutions?Howcantheyleveragedatatocreateamoderninsuranceenterprise?

Datamanagementbeginswithastrongorganization.Overthepast10to20years,

insurershaveappointedaChiefDataOfficer(CDO)andorganizeddata-focusedteams,includingdatascientists.Theprimaryfocushasbeenongenerating

exceptionalinsightstodrivecompetitiveadvantage,gainmarketshare,improvecustomerexperience,andincreaseefficiencies.

Tocreateamodernenterprise,insurersmustgobeyondinsights.Theyneedto

organizedatawithcontinuousimprovementcapabilities.ApartfromtheCDO,

insurers—especiallylargercompanies—canformaDataCenterofExcellence(DCoE)andstaffitwithdatascientists,architects,engineers,andadministrators.

Itisessentialtoreassessthedatastrategy,startingwiththefundamentalsofdatamanagementandthenleveragingemergingarchitectures,storage,tools,and

technologytotakeittothenextlevel.Figure3providesaframeworkforformulatingyourdatastrategytoenableamoderninsuranceenterprise.

CreatingaModernInsuranceEnterpriseData

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Figure3:DataStrategyFrameworktoCreateaModernInsuranceEnterprise

Source:OliverWyman

Onceyouhaveformulatedyourdatastrategy,thenextstepisexecution.Giventhealignmentrequiredwithemergingtechnologies,itbecomescrucialtohaveastrongexecutionteam.However,newtechnologytalentisscarce.Savvyinsurersshould

thoroughlyvettheirteam,includingsystemintegratorsandotherpartners,to

undertakeadatamodernizationjourney.Figure4outlineshigh-levelexecutionstepsforinsurerstoembarkontheirdatastrategyandmodernizationjourney.

DataGovernance

Thisisthefirstandmostimportantstepinmodernizingyourdataorganization,

becauseyouneedtoclearlydefineastrategyandguardrailstomanageandprotectallyourdata.Thiswillprovideanoperatingframeworkfordatamanagementacrosstheenterprise.Datagovernanceenablesorganizationstoreducedata-relatedrisksandincreaseitseffectiveuse.

DataSource

Thenextstepistoidentifyallyourdatasources,includingtheirrespectiveowners.

Thisexerciseshouldcoverstructuredandunstructureddataexistingwithinthe

enterprise,aswellasstreamingdatathatyouanticipateanalyzingorprocessingfromsocialmedia,theInternetofThings(IoT),andothersources.

CreatingaModernInsuranceEnterpriseData

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Figure4:ExecutionStepsforModernizingDataManagement

Source:Celent

DataRepository

Onceyouhaveestablishedyourdatagovernanceandidentifiedyourdatasources,

youcanproceedtoplan,design,anddevelopadatarepositoryinthecloud.ThiscantaketheformofaDataLakeoraLakehousetoaccommodateallyourstructuredand

unstructureddata.Theengineeringofthisrepositoryshouldconsidertheparametersestablishedaspartofthegovernanceexercise.

DataTaxonomy

Inthisstep,youcreateclassificationstomanageandcontrolallyourdata.Multipleclassificationlevelscanbecreatedtoensureappropriateauthorizationfordata

viewingandusage.Thisprocessalsohelpsinmanagingyourdatainastructuredaswellasunstructuredmanner.Additionally,datataxonomyassistsorganizationsinthediscoveryanddecisionsupportprocesses.

DataExtraction

Havingestablishedgovernance,identifieddatasources,formedarepository,and

developedtaxonomy,datacanbeextractedfromallcurrentsourcestobeloaded

intoyourrepository.Extractionfromsomesourcescanbestraightforward,while

othersources,suchasstructureddatainlegacysystemsandunstructureddatalikeemailsandcustomervoicemails,canbeextremelycumbersome.Fortunately,thereareproventoolsavailablefordataextractionandmigration.Additionally,AIandMLcanbeemployedtoaidinthisprocess.

DataQuality

Dataqualityassuranceisessentialtoestablishtrustinyourdata.Automationand

algorithmscanbecreatedtoreviewandcleanseyourdata.IfyouhaveMasterDataManagement(MDM)software,utilizeittoeliminateduplicatesandestablishdataconsistency.AIandMLcanbeemployedforthispurpose.

CreatingaModernInsuranceEnterpriseData

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DataSecurity

Basedonyourdatataxonomyanddatagovernanceguidelines,buildyourdata

securityandownerauthorizationasneeded.Thereareseveralthirdpartyandcloudprovidertoolsavailabletoensuredatasecurity.Thisisparticularlyimportantin

regulatedindustrieslikeinsuranceandtoprotectpersonallyidentifiableinformation(PII).

DataLoading

Oncethepreviousstepsarecompleted,youarereadytoloadallyourdataintoyourcloud-basedrepository(DataLakeorLakehouse).Multipledataextractiontoolsalsohavetheabilitytocleanseandloaddataintoarepository.Itisatime-consuming

processtoextract,ensurequality,secure,andloaddataintoafuturestate

repository,soitisbesttoprioritizeandaccomplishthisinphases.AIandMLmodelscanalsobeutilizedasneeded.

DataFabric

Datafabricisanewlyevolvingdataarchitectureandframeworkdesignedto

integratealldatasourcesinrealtimeornear-realtimeusingacombinationof

microservices,APIs,containers,andKubernetes.Itconnects,integrates,secures,andgovernsdatainamulti-cloudandmulti-systemenvironment.Theideaistobuilda

datafabricarchitectureandautomatedataintegration,drivenbydatagovernanceaspects,toensuredataaccuracyacrossallstakeholdersandoperateasatrulydata-drivenenterprise.

DataAdministration

Nowthatyouhavecreatedamoderndataorganization,itmustbeadministeredandoperatedinanefficientandeffectivemanner.Buildnecessaryworkflowstomanagestakeholders'anddataowners'expectations.AutomateprocessesandutilizeAIas

neededtotakeadvantageofthedatafabricarchitecture,eliminatingbottlenecks,andenablingrealtime(ornear-realtime)integrations.

Creationandexecutionofadatastrategy,governance,andmanagementisa

significantundertakingthatdependsonvariousfactors,includingthesizeofinsurers,

theirunderlyingculture,organizationalalignment,datasources,subjectmatterexpertise,andexecutiveleadershipcommitment.Giventheimportanceofdata,shouldaninsurerlacknecessaryin-houseexpertise,itwillmakesensetoseek

guidancefromanoutsidepartner.Itisacrucialandessentialaspectofcreatingadata-drivenmoderninsuranceenterprise.

CreatingaModernInsuranceEnterpriseCloud

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CLOUD

Cloudcomputinghasadvancedsignificantlyfromtheperspectivesofstorage,

tools,solutions,and,mostimportantly,security.Itoffersnumerouspossibilitiesforinsurerstoinnovateandcreateamodernenterprise.Furthermore,cloud

computingisexpectedtoexpandalongsideemergingtechnologies,providing

insurerswithmoreopportunitiestogrowrevenues,improveoperations,reduce

leakage,andenhancecustomeranduserexperience.Ifdataisthebackboneofanenterprise,thecloudprovidesthestructuretoextractthebestvaluefromits

usage.

Cloudprovidersareinnovatingatarapidpaceandprovidingaplatformfor

businessestoexcel.Approximately93%oftheinsurerswesurveyedarealreadyusingthecloud,andmostofthemaresatisfied.(SeeFigure5.).

Figure5:IsMovingtoCloudWorthIt?

7%

53%

26%

13%

48%

8%36%

16%

8%7%

56%

21%

AllInsurers Life&AnnuityProperty&Casualty

50%

17%

33%

55%

27%

18%

38%

13%

50%

P&Cover$5billion P&C$1billionto$5billionP&C$500millionto$1billion

73%57%

9%14%

18%14%

P&C$100millionto$500millionP&Cunder$100million

33%

67%22%

L&Aover$5billion

56%

11%11%

100%

17%

67%

17%

L&A$1billionto$5billionL&A$500millionto$1billionL&Aunder$500million

YesNoTBDN/A

Source:CelentReport–IsMovingtoCloudWorthIt?

CreatingaModernInsuranceEnterpriseCloud

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Thecloudoffersinsurersanopportunitytoretiretheirtraditionaldatacenters.The

threemaincloudvendors—AmazonAWS,MicrosoftAzure,andGoogleCloud

Platform(GCP)—knownashyperscalecloudprovidersorhyperscalers,are

continuouslyinnovatingandintroducingnewproducts,tools,andsolutionsforvariouscomputingneeds.Theseincludeserverlesscomputing,storage,security,identitymanagement,datamanagementandanalytics,AI/ML,application

developmentandmonitoring,andmore.Someoftheseprovidersalsooffersolutionstailoredspecificallyfortheinsuranceindustry.

Thereareseveralwaystogetstartedwithcloudcomputing.Ifyouhavenotalreadyventuredintothecloud,weencourageinsurerstoreviewourreportsoncloudto

gainourperspectiveonsuccessfactors,bestpractices,andlessonslearned.Thebestwaytogetstartedwithcloudcomputingistofocusondatafirst.Ifyouarealreadyin

thecloud,oursurvey-basedreportprovidesexcellentguidanceonwhathasandhasn’tworked,whichareastofocuson,andwaystogeneratevaluefor