The Future of Insurance E-Business Groups

January 21, 2003

Abstract

New York, NY, USA January 21, 2003

Many insurers are cutting their e-business groups. Celent urges them to avoid throwing the baby out with the bath water. These groups can and must be reconstituted to deal with key technological issues which must be coordinated centrally if yet more disastrous "legacy" problems are to be avoided.

Due to a combination of budgetary pressures and the extension of e-business skills and responsibilities throughout the enterprise, many insurance carriers are cutting the dedicated "e-business" groups that they had formed just a few years ago to help them ramp up for the Web economy. In a new report, , Celent Communications urges carriers to replace their functional "design, build, maintain" e-business groups with central "strategic knowledge management" groups to ensure coordination, inter-operability, and maximum efficiency among disparate Web projects.

"While it is no longer necessary to have a dedicated group directly engaged in building Web projects, carriers that do not devote resources to enterprise-wide coordination will quickly find themselves facing a new breed of legacy systems problem擁ncompatible and badly organized Web infrastructure,"

says Matthew Josefowicz, author of the report and manager of Celent痴 insurance group. "Carriers should focus on central coordination for five key areas: strategy, education, usability, security, and standardization."

In order to achieve the goals of knowledge sharing and coordination in these five areas, Celent recommends that insurers keep three things in mind when designing their e-business organization: 

  1. ensuring CEO sponsorship and active support, 
  2. creating the right incentives to get cooperation from business and IT staffs, and 
  3. staffing e-business groups with high-level experts.

The report includes a survey of 10 top-tier insurance e-business groups, which illustrates the very different ways e-business is currently managed, and the challenges these groups face.

A is available online.

of Celent Communications' Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

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

 

New York, NY, USA January 21, 2003

The Future of Insurance E-Business  Groups

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
HISTORY 5
  Internal Dot-Com 5
  Design, Build, Maintain 6
  Strategic Knowledge Management 6
E-BUSINESS GROUPS TODAY 7
  Shrinking Budgets 7
  Organization 8
  Staffing 8
  Project Ownership 9
  Primary Activities 10
  Project Types 10
  Success Metrics 11
  Needs 12
  Findings 13
THE FUTURE OF E-BUSINESS GROUPS 14
  Paging Dr. "Seuss" 14
BUILDING TOMORROW'S E-BUSINESS GROUPS 16
  Organization: CEO Sponsorship 16
  Getting Cooperation 16
  Staffing: High-Level Experts 17
  Converting E-Business Groups 17
CONCLUSIONS 18

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