All Aboard for Modernisation: Next Stop Underwriting - Paper - Page 7
Transformation vs Modernisation
Transformation is o昀琀en painful for the
organisation. Modernisation is almost
always empowering.
Altus has been advocating for this model for many
years. Our 2017 white paper “The Insurtech journey…
are we there yet?”6, highlighted that the travel
industry had completed its own transformation
within a 10-year window, on both the distribution
and product side of operations. Sadly, it would seem
that 昀椀ve years on, the insurance industry still hasn’t
managed to emulate that.
Before exploring what modernisation means for
insurance, it’s important to understand how it di昀昀ers
from transformation.
A transformation founded purely on technological
changes can provide all the necessary tools
to become a modern underwriter but without
modernised processes, the e昀昀ectiveness of those
tools is necessarily blunted. That’s why at Altus we
believe that any modernisation programme should
start with the process, and process always starts
with purpose.
A transformation founded purely
on technological changes can
provide all the necessary tools to
become a modern underwriter but
without modernised processes,
the e昀昀ectiveness of those tools is
necessarily blunted.
VS
Transformation
Is a deliberate and signi昀椀cant shi昀琀 in business and
operating models, processes and systems to realise
greater value. These programmes focus on the delivery
of systems and technology and as signi昀椀cant change
programmes, they come with signi昀椀cant risk.
Timescales
Cost
Modernisation
Involves changes to systems, platforms and processes
but rather than a substantial ‘rip out and replace’
approach, modernisation favours incremental gains over
marquee projects – it’s about taking a business to the
next level one step at a time.
Timescales
Cost
£
E昀昀ort
Impact
Chance of
Success
£
E昀昀ort
Impact
Chance of
Success
30%
80%
Figure 0.2: Transformation vs Modernisation comparison
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https://www.altus.co.uk/insights/the-insurtech-journey-are-we-there-yet/
