Celent Model Insurer 2017: Case Studies in Operational Excellence

by Colleen Risk, April 4, 2017
Case Studies
Global

Abstract

Celent Model Insurer 2017: Case Studies In Operational Excellence

What does it take to safeguard investments in technology and improve upon IT processes? This report recognizes projects such as successful reuse of technology for new initiatives; implementation of a nocore system, such as illustration, CCM, electronic applications, best practices in IT governance, IT operational management or IT program management and security policies.

Operational excellence case studies of Aflac, Saxon, and MassMutual are featured. Success breeds success. Each of the case studies provides benchmarks, metrics, risks and mitigations, and showcases best practices. This report provides examples that illustrate how to effectively use technology and will inspire insurers who want to improve their own technology strategies.

Aflac was in need of modernization and is still likely to undergo more change as the industry continues to capitalize on social, mobile, and wearables. In response to this reality, the Aflac IT Division implemented an agile transformation to their projects and processes to meet the changing needs of its customers.

Saxon serves the Cayman island community, which has of approximately 50,000 inhabitants. With a limited pool to hire from or sell product to, in order to remain viable in the insurance market, they needed to employ technology to better serve the needs of their customers and grow their business.

MassMutual offers a Data Science Development Program (DSDP) in Amherst, MA, that trains promising, recent graduates to become well-rounded data scientists over a period of three years. The program combines rigorous academic coursework and practical data science projects for MassMutual — a unique and valuable combination.

"The desire to be more cost-effective while providing superior service resonates with all insurers," said Colleen Risk, Senior Analyst in Celent's insurance practice and author of the report. "Coupling this with the continuing low interest rate environment and the need for insurers everywhere to tighten their belts, operational excellence is at the top of every CIO's mind."

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Model Insurer Overview

3

 

Model Insurer Themes

3

 

About this Report

6

 

Summary of Model Insurer Award Winning Initiatives

7

Common Best Practices and Results

10

 

IT Best Practices

11

 

Measurable Business Results

14

Operational Excellence and Its Impact on the Insurance Industry

17

American Family Life Assurance Company (Aflac): Agile Transformation

19

Saxon Insurance: Virtual Global IT Organization

23

MassMutual: Data Science Development Program

27

Conclusion

31

Leveraging Celent’s Expertise

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

33

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