The insurance industry faces the challenge of making its processes more efficient and cost-effective to keep pace with the ever-changing market. On the other hand, there are steadily rising IT costs, especially with insurers, who have been locked into an organizational and DP-related dependency on the major software providers for decades. Some providers' lack of qualified personnel and inadequate customer support only reinforces this effect.
In view of these developments, more and more people are asking themselves whether the current "business as usual" strategy is still viable in the long term. In particular, overarching software products such as payment transactions, commissions or workflow systems are increasingly being included in a profitability analysis.
New providers on the rise
Against the background that in the past there were only a few providers in the D-A-CH region that were able to cover the specialist requirements of the insurance industry in the area of payment transactions, insurers relied on the large software providers and integrated the so-called cross-sectional systems into their IT landscape in projects that took many years and were costly.
At present, it is evident that resistance and resentment against the software giants are on the rise. Exploding maintenance costs, unclear innovation strategies and forced conversions to new technology platforms are just a few examples that are increasingly exasperating the industry.
In the meantime, specialized software firms offer products that not only cover the already mandatory legal requirements for in-disbursement systems, for example, but also use only the latest technology and industry standards. The new platforms are impressive for their intuitive, user-friendly interfaces and are easily configurable via parameter tables.
In addition to ensuring compliance with legal requirements and the automated and audit-proof processing of in-disbursement processes, the software must be release-capable, easy to integrate into existing IT landscapes through open interfaces, and adaptable to customer-specific requirements through a flexible set of rules.
In summary, the following are the main factors behind why more and more customers are choosing products such as in|sure Paytras:
- Modern technology and architecture that enable faster and more flexible customization and simplify integration with other systems and data sources
- The systems can be operated intuitively and thus reduce the amount of training required, meaning they are more readily accepted by users
- Significantly lower costs for implementation, customization and maintenance. More flexible pricing models that are better tailored to the business needs of insurance companies.
Decisions of principle with far-reaching consequences
A smooth transition from existing IT systems to new technologies is a complex task in any industry. In the insurance industry, however, the challenges are particularly substantial. There are many reasons for this. The complexity of existing systems, regulatory requirements, stringent data integrity and security requirements, and potential employee resistance to change must be considered in planning and selection.
Due to a lack of alternatives, traditional providers, especially for cross-sectional systems such as in-disbursement or commission, were the undisputed market standard for a long time. In the meantime, functionally equivalent and technologically more advanced systems have been developed and are now available for the insurance industry. It is therefore not surprising that companies are beginning to rethink the situation and strategically evaluating possible alternatives right now.
Close dialogue with internal stakeholders, IT experts and new potential technology partners can help determine the best strategy for change or diversification when introducing new products.