Taking the Canadian Insurance Industry Digital

May 6, 2018 / G C Network / Comments Off on Taking the Canadian Insurance Industry Digital
Source connect logo in blue and white color.

SourceConnecte! Marketplace With A Mission

By pwsadmin | March 6, 2020

Earlier this year, GC GlobalNet launched a new breed of B2B e-commerce sites. Curated by Kevin L. Jackson, SourceConnecte (with an “eâ€) went live with three strategic goals in mind: Efficiently leverage modern…

A man sitting on top of a building with a laptop.

Potential vs. Reality: Is Edge Computing Real?

By pwsadmin | January 19, 2020

Edge computing provides compute, storage, and networking resources close to devices generating traffic. Its benefits are based on an ability to provide new services capable of meeting stringent operational requirements…

An aerial view of a truck on a road near the ocean.

Enabling Digital Transformation

By pwsadmin | December 22, 2019

Digital transformation integrates technology into all areas of an organization’s business or mission. Its fundamental purpose is to create and deliver innovative and industry-changing products and services to a global…

A woman in red sitting on a chair with the word thinkshield.

The ThinkShield Story Part 1: The Challenge

By G C Network | October 24, 2019

  The cybersecurity challenge seems to be growing daily. Threats are becoming more sophisticated, and attacks are becoming more destructive while the corporate world’s response seems to resemble a deer…

A group of people walking up a set of stairs.

CIO dream team: Who’s in and why?

By G C Network | October 12, 2019

Today’s CIO navigates the twin challenges of enabling new business models and managing rapid technological change. Cloud computing strategies are now table stakes. CIOs must make complex decisions about using…

The ibm logo is seen on a black and blue computer.

Digital Transformation and the Mainframe

By G C Network | September 1, 2019

Digital transformation infuses digital technology into all areas of an organization’s business or mission. Its fundamental purpose is to create and deliver innovative and industry-changing digital products and services to…

A man standing in a server room with blue lights.

Composable Architecture Q&A. Are you ready?

By G C Network | August 26, 2019

Q: Is it time for my company to jump on the composable architecture bandwagon? A: Composable architectures are quickly becoming essential to the modern enterprise. Citing a recent Forrester study:…

A diagram showing a network of devices.

Increase Productivity by Reducing Technology Distraction: Lessons from Forrester Research

By G C Network | August 8, 2019

Workplace productivity is hurt every day by the very technology developed and purchased to improve it. Forrester announced this surprising conclusion in their latest “How To Wake Up From The Nightmare…

A series of pictures showing different types of products.

Unveiling the end-to-end capabilities for the networked society

By G C Network | June 10, 2019

An Interview with Henrik Basilier  By Kevin L. Jackson The telecom industry is rapidly moving towards a future in which networks must have the capabilities of delivering services with the…

A man is holding a credit card on a tablet.

AT&T Finance Solutions GM on Shrimping, Software, and CX

By G C Network | June 10, 2019

Helping clients address the trends and challenges presented by the Financial Services industry is the main focus for René Dufrene in his role as General Manager of Finance Solutions at…

“Digital disruption isn’t just for hip start-ups. Incumbents can not
only compete but actually lead radical industry change if they pay attention
to the way their business model is shifting and act boldly in response.
Founded in 1871, Economical Insurance operates within the old and relatively static Property and Casualty (P&C) insurance industry.  According to the American Insurance Association (AIA), the modern insurance industry, developed primarily in England after the Great London Fire in 1666. Today, this insurance industry segment protects from risk in two primary areas:
  •  Protection for physical items, such as houses, personal possessions, cars, commercial buildings, and inventory (property); and
  • Protectionagainst legal liability (casualty).

 

Property insurance provides for losses related to a policyholder’s person or property while casualty/liability insurance protects a policyholder against the claims of others.
Economical sees itself as the insurance company “For Canadians by Canadians.” They also tout themselves as a company that imagines bigger and better things. Their credo is to focus on the customer first, and this is why Economical is one of this country’s leading and most trusted P&C insurance companies.
With this background and belief, it may come as no surprise that innovative internal thinking led to the conceptualization of a new business model.  One targeted to a market segment that was comfortable with advanced technology. They saw these customers as underserved because traditional service channels were not meeting their unique needs. By feeding on a passion and desire to make a difference in everything they do, Economical business and technology teams partnered to build a new channel built entirely on digital processes.

 

The vision they saw was Sonnet. Launched in 2016 t,his new brand brought an innovative new insurance experience to Canadians who prefer to purchase insurance directly online. Using sophisticated technology and real-time analytics, customers are now able to instantly get customized quotes, purchase a policy, and make account updates online at any time.
The intent was to leverage and aggregate data from multiple sources, apply real-time analytics and provide a unique personalized recommendation based on the customer’s profile. The twin challenges were finding an evolutionary and transformative path that wouldn’t crater the existing business and a savvy business technology partner that wouldn’t waste the company’s time and money. That partner was IBM.
The most critical element in this effort was speed. With time to market being so important, a public cloud-based solution was the answer. The IBM public cloud allowed Economical to deploy quickly, take advantage of automation to reduced errors and enabled business flexibility.
Another key component of this partnership was software development that used the KANBAN Agile Methodology. Kanban is based on three principles:
  1. Visualize what you do today (workflow) to see all development items within context.
  2. Limit the amount of work in progress (WIP) to balance the flow-based approach and prevent team over commitment.
  3. Enhance flow that uses a priority process to pull in development backlog in as soon as a previous task is completed.

 

When compared to the well know SCRUM model, using KANBAN promoted continuous collaboration and encouraged active, ongoing learning and improvement by defining the best possible team workflow.
Economical pursued a hybrid cloud strategy to leverage the previous enterprise IT service investment. Significant time was therefore spent in the design phase because the right design required decisions on what went in the cloud and what stayed on premise. Those decisions, in turn, drove data flow, security control locations, and any required infrastructure resiliency improvements. The hybrid strategy also brought with it a need to integrate with legacy systems. IBM was able to meet this and associated requirements to partner with other members of Economical’s business ecosystem.
In the end, the key to an on-time launch of Sonnet was primarily teamwork and a real partnership. Sonnet thoroughly disrupted the P&C Insurance market in Canada. It successfully challenged the status quo and demonstrated that digital transformation was possible with the right technology partner. This success has spotlighted Economical as an industry leader and business innovator. Customer reaction has been extremely positive, and the business has been scaling with a healthy and steady growth trajectory.
One of the many lessons learned by Economical during this process was that disruption is not a one-time event. Organizations must continue to re-invent themselves or competition will disrupt you. This new internal operating model has led to new product suites, new offerings, simplified pricing and new internal workflows. The service offerings will be built on top of the infrastructure put in place for Sonnet and will change the way Economical works with their brokers. Although a bi-modal, two speed IT operations model was initially accepted, this next step will use cloud computing to connect cloud-native components to core legacy assets. This “real IT transformation” will use additional efficiency to fund future transformation initiative through a long-term partnership with IBM.

This post was brought to you by IBM Global Technology Services. For more content like this, visit ITBizAdvisor.

 

Cloud Musings

( Thank you. If you enjoyed this article, get free updates by email or RSS – © Copyright Kevin L. Jackson 2016-2018)

Follow me at https://Twitter.com/Kevin_Jackson
Posted in

G C Network

Cloud Computing

Cybersecurity