Closing the Gaps: Expanding Your Technology Ecosystem

Welcome to the Technology Ecosystem

A technology ecosystem is the collection of applications that an insurer uses to innovate and improve its processes and products through core systems integration. The end result? An engaging and satisfying user experience for both the carrier team and their customers.

As an insurer, there is no single application or one platform that can facilitate all your business needs, no matter how comprehensive that platform is. The older and more complex those core systems are, the harder it is for your technical team to respond to innovation.

Technology Ecosystems Level the Playing Field

Historically, size has been a huge advantage for larger insurers, the larger the company, the bigger the budgets to build out technology. As we all know, technology in the insurance space has traditionally lagged behind other industries. Traditionally, those big carriers would either build or buy systems and hire a fleet of programmers to add features they thought they needed.

Today, taking advantage of third-party technology via integrated ecosystems levels the playing field for carriers of all sizes.

Most SaaS applications typically offer volume-based pricing, which makes these attainable options for small carriers, allowing them to not only fill feature gaps but also extend their platforms exponentially and compete with the bigger players. For example, utilizing a technology ecosystem to enable greater customer engagement, reduces carrier cost that results in a better experience for everyone.

A completely automated process that takes applicants from inquiry to policy issue offers a seamless digital experience. Data is captured, validated, and processed using integrated tools to provide the carrier with the information it needs to assess the risk and underwrite the policy without involving the applicant at every step of the process. After the policy is issued, the billing and claims experience can also be seamless with self-service portals, integrated chat, digital payments, and communication via the policyholder's preferred channel.

What's Required for Carriers to Take Advantage of Innovative Technology?

The process begins by looking at your core systems and identifying what you want to improve, for example: processes, products, client engagement or cyber security. Once those strategic initiatives are identified, the challenge insurers face is how to connect these innovative solutions to their core systems.

Insurers must have a flexible core system that can integrate with these applications via APIs. We know at OneShield, carriers are at all different stages with their core systems technology.

Whether you're making strides to modernize or replace a legacy system, or get started with a new platform, you're moving in the right direction to fully realize the potential of the technology ecosystem.

Well Documented APIs Are Critical!

Done right, your core system will have the flexibility to integrate with third-party applications that enhance policyholder experience, encourage agent engagement, allow swift launch of new and modified products, and include automated underwriting and claims processing, data-driven risk modeling, fraud detection and more.

Creating a Compelling Market Advantage

"These integrations are instrumental in allowing carriers to move from the traditional 'Repair & Replace' mindset to the future-now of 'Predict & Prevent.' I've borrowed that phrase from several technology providers of property insights and predictive analytics, as it is an example of the strategic vision market leaders are embracing with the assistance of third-party solutions. These applications use artificial intelligence and machine learning to turn the massive amounts of data available into real insights that provide property owner information that could prevent claims, helping carriers lower loss ratios and protect their bottom line."
Chad Galgayy, Chief Information Security Officer

How Do You Deliver the Results of These Innovations to the Marketplace?

It's through the digital core systems platform, which is no longer optional for carriers.

As insurers, you need this highly configurable, flexible and dynamic interface with your distribution channel and your policyholders to compete with Amazon, Netflix, Google that are now in your space, literally, in the face of your policyholders. If the pandemic didn't prove its need, you can see what's coming with our future generations that are device obsessed. The Z generation is at our doorstep. They've grown up in a hyper-connected world and the smart phone is their preferred method of communication. They want autonomy and expect to control their own experiences.

This digital platform is critical for delivery, but also extremely important as it collects your first party data, structured, unstructured, and with the deployment of your technical partners this is where the magic happens.

Carriers can use this data to predict needs of policyholders and increase touch points for customized experiences and tailored products. With your modern system you will have the capability to swiftly launch those customized coverages. Loss prevention is heightened through real time data driven risk modeling as well as advanced notice of oncoming events.

Data and your technology ecosystem are instrumental in accelerating and prioritizing submissions, automating underwriting, prefilling FNOL, expediting claims processing and facilitating digital payments.

Be Nimble!

Innovators are using flexible core system technology to streamline their time to market. They don't have legacy systems to weigh them down so they can launch with out-of-the-box policy admin software and focus on what they do best, identify and underwrite risk to meet the challenges business owners are facing in the market right now.

These startups are reaching the market with what we call the Minimum Viable Product, it may not have all of the benefits of the technology ecosystem in place yet, but they identify those mission critical integrations to offer the best market facing presence with speed of customized product delivery.

All insurers, especially startups, should plan for immediate and future functions simultaneously while not reinventing the wheel.

Core go-to-market functions might include quick quoting, binding, policy issuance, billing, first notice of loss capabilities, a couple of required 'day-one' integrations, and a simple portal to facilitate customer service.

It's important that this functionality can be extended (not rebuilt) as your business requires more functionality or handling capabilities:

• Quoting algorithms for more complex risks
• Additional API integration capability to connect with partner systems
• Multiple types of billing transactions
• Multiple distribution models
• Straight-through claims processing
• Full end-to-end automation of policy administration

"Getting to market faster and offering leading capabilities to enhance the way you service customers is critical to competing in today's market. At OneShield, we are seeing startups launch into the Excess & Surplus market at incredible speed. Two types of E&S startups that are emerging are established insurance professionals taking advantage of market demand to launch their own companies, and technology-driven startups, which have historically focused on personal-lines products."
Leah English, SVP Sales

Mission-Critical APIs for Success in 2023

At OneShield, we see insurers focusing on data, improving data literacy across the organization, and truly becoming data driven with support from third-party technology:

• Artificial intelligence
• Machine learning
• Integration with IoT
• Advanced risk modeling

Additionally, critical integrations enable improved risk assessment, claims management and payment processing (both inbound and outbound).

Having core systems with a robust set of documented APIs to interact with these technology platforms and portals is essential to extend functionality as a carrier's business and technology needs grow. Consider a core systems provider that includes an integration hub that supports modern workloads, master data management and multiple types of user profiles.

A Note About Cyber Security and Third-Party Integrations

If you are structuring your own ecosystem without the support of a technical partner like OneShield, we encourage you to look for a security partner with expertise in API testing.

At OneShield, our Chief Information Security Officer and his team have secured a third-party to support all testing and vetting of APIs.

Also, do your homework on OWASP and NIST's sites where these organizations share security standards and common risks surrounding API integrations.

As part of your vetting process, consider the following:

• Look for Soc2 certifications
• Do they adhere to regulatory compliance in your geographic territories as well as insurance specific requirements?
• Consider the maturity of the vendor to ensure that sufficient funding has been committed to stringent security practices and staffing

Security as Company Value: Learn more about our SOC2 Certification.

About OneShield

OneShield provides business solutions for P&C insurers and MGAs of all sizes. OneShield's cloud-based and SaaS platforms include enterprise-level policy management, billing, claims, rating, relationship management, product configuration, business intelligence, and smart analytics.

Designed specifically for personal, commercial, and specialty insurance, our solutions support over 90 lines of business. OneShield's clients, some of the world's leading insurers, benefit from optimized workflows, pre-built content, seamless upgrades, collaborative implementations, and pricing models designed to lower the total cost of ownership.

Our global footprint includes corporate headquarters in Marlborough, MA, with additional offices throughout India.

For more information, visit OneShield.com.