Taking the Canadian Insurance Industry Digital

May 6, 2018 / G C Network / Comments Off

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GovCloud Founder and Veteran’s 360 Showcased in US Veteran’s Magazine

By G C Network | June 13, 2014

Kevin L. Jackson, CEO and Founder of GovCloud Network, LLC, was showcased in US Veteran’s Magazine for his work with Veteran’s 360, a San Diego, California non-profit. With more than…

Cloud Environment Can Enable Fast, Secure Collaboration among Industries, Nations

By G C Network | June 4, 2014

NCOIC’s Kevin Jackson to present new process for creating interoperability via a cyber-secure multi-cloud environment at cloud computing conferences in the U.S. and China WASHINGTON—June 4, 2014—Cyber-secure cloud computing can…

The Federal Government Journey to Cloud Computing: Lessons Learned

By G C Network | June 3, 2014

[Republished from”On The FrontLines” magazine “Cloud Computing in Government: Lesson’s Learned” issue. Download the full 20 page issue online at https://digital.onthefrontlines.net/i/319551 ) In February 2011, Vivek Kundra announced the “Cloud…

Cloud Computing In Government Lesson’s Learned From On The FrontLines Magazine

By G C Network | May 29, 2014

Congratulations to my friends at “On The FrontLines Magazine” for an EXCELLENT presentation of important operational and managerial cloud computing transition lessons. This issues showcases cloud computing leaders from government…

From “Boots on the Ground” To “Heads in the Cloud,” Non-Profit aims to offer Cloud Training & business services to Corporate IT and HR teams.

By G C Network | May 28, 2014

From “military dedication” to “civilian success,”Veterans 360 Services is approaching the challenging transition of military service to civilian life with an innovative, focused and all-inclusive, 360 degree, process of education…

ICH Agile Cloud Consortium Completes Successful Event

By G C Network | May 22, 2014

Thank you to all that participated in yesterday’s ICH Agile Cloud Service Catalog event. ICH Agile Cloud is an industry-wide effort targeted at developing an open and inclusive cloud service…

ICH Releases Agenda for Agile Cloud Service Catalog Session

By G C Network | May 20, 2014

The Agile Cloud consortium’s second event will occur on May 21, 2014 at TIA Headquarters in Arlington, VA. This event will focus on development of the Agile Cloud Environment Service…

PDNS Offers “Anchor” Cloud Services to Agile Cloud Consortium

By G C Network | May 14, 2014

Private Digital Network Services (PDNS) and partners will provide its national, Private Digital Network (PDN) core and a suite of highly sought after services to the Interoperability Clearinghouse Agile Cloud effort. Its…

ICH/ITAAC Announces Second Agile Cloud Environment Event

By G C Network | May 7, 2014

The 2nd Agile Cloud Environment event will be held on May 21, 2014 at TIA Headquarters. This event will focus on development of the Agile Cloud Environment Service Catalog. The…

Interoperability Clearinghouse Launches “Agile Cloud” Collaboration

By G C Network | April 28, 2014

Last Wednesday, Maj Gen, USAF (Ret) John T. Brennan, Interoperability Clearinghouse (ICH) Executive Director, kicked off the Agile Cloud collaboration. This industry-wide effort is targeted at developing an open and…

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“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.

–McKinsey & Company

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:

Visualize what you do today (workflow) to see all development items within context.
Limit the amount of work in progress (WIP) to balance the flow-based approach and prevent team over commitment.
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.