Adopting agile methodology and service modernization with effective automation helps insurers deliver quality services to the policyholders. Maintenance and improvement of digital processes create the need for cost optimization for the insurance business.
For continuation of the insurance business, the need for digitization and up-gradation is becoming a necessity. Agility in implementation is a critical factor in the business cost for an insurance provider.
Smart use of technology has a vast potential for the business as it helps optimize the cost. Integration is part of the core insurance system. If insurers manage to standardize the implementation of the integration, it benefits the business.
How to lower the cost of implementing common integration?
Adopting a prescriptive approach – the division of steps, identifying common areas, and classification of the simple and complex zones-enables the team to focus on the core objective. The prescriptive approach creates the map for integrations, where each step saves time and cost.
Steps of the prescriptive approach
The prescriptive approach’s general steps are communication, planning, modeling, construction, and deployment used in the management terms. For software integration, Fecund experts modified the prescriptive approach into the following steps.
- Communicate to identify the requirement and specification
By communicating with the people around the business, which involves customers, employees, and experts, an insurance provider can identify the business requirements and specifications. - Planning for action
The feasibility analysis to calculate risk factors, executions, and alternatives are considered while creating a plan. - Modeling
After the complete plan of the system, the integration process is released. Afterwards, the actual architect plan of system implementation starts. The logical and physical design are compared at this stage. - Verification
After the system design verification, a checklist of steps is followed to find the loophole. - Deployment
The last step in the prescriptive approach is to deploy the plan.
Software Integration Architect and developer consultation.
One Harvard research shows that one of the six IT projects has a cost overrun of 200%. To avoid the same situation for the insurance business, taking consultation from the insurance industry experts of software implementation improves ROI. With a deep understanding of the insurance market and the software, experts customize the system implementation as per business needs. To balance the risk and security for the business, standardizing the process is needed.
Benefits of standardization
- Stick to business strategic imperative
The goal of the business should be aligned with the processes of the business while deciding the integrations. Being selective and specific helps to choose and optimize the use of integrations. - Focus on business-specific integration
By understanding the plans and processes, the choice of necessary integration and avoidance of impractical integration becomes tremendously useful. - Increases ROI
Standardization impacts the optimization of the cost involved in the business. - Maintain Quality
The quality of the services can easily get affected by the process. Without standardization, the chances of varying results are high. - Innovation
Standardization helps to make the right decisions to adapt to the new business capabilities. The preplanned structure brings clarity for automation and gives areas for improvement.
