4299 Altus Insurance Whitepaper FINAL SPREAD - Flipbook - Page 6
Introduction: Unique challenges
of transforming the Insurance
industry (cont.)
Insurance industry signi昀椀cant shifts over the last 40 years
1980’S
1980’S
1980’S1980’S
1980’S
Brokers remain
dominant and the
yellow pages drives
business until Direct
Line disrupted
distribution,
Acord launched its
standards
1990’S
1990’S
1990’S1990’S
1990’S
The arrival of
the WWW and
the connected
computer, Norwich
union being one
of the earliest web
experimenters. GIS
solutions evolved
2000’S
2000’S
2000’S2000’S
2000’S
Price comparison
websites launch,
telematics trials,
Salesforce
reinforced the need
for CRM and helped
launch the SaaS
model, paving the
way for new cloud
hosted insurance
solutions
2010’S
2010’S
2010’S2010’S
2010’S
Insurtechs arrive
with new products,
models and
technology. Vitality
delivers a wearable
(IOT) proposition
and PPL is launched
2020’S
2020’S
2020’S2020’S
2020’S
Embedded,
parametric and
algorithmic
solutions are
all advancing.
Generative AI has
arrived.
Figure 0.1: Insurance shi昀琀s over time
The chilling e昀昀ect of outdated operating
models
Over the last 40 years, insurance has shown it has
the capability to transform but it remains at best a
hybrid between manual and digital processes. It has
adapted and evolved in discrete areas but wholesale
modernisation remains elusive. The technology is
available, the ability to implement it exists and the
budgets are clearly there. So why haven’t we seen
more fundamental change?
At Altus, we believe transformation has failed because
the technology is being used to update individual
systems or products while ignoring the wider business
architecture. Old processes and thinking resist, rather
than support modernisation and have a chilling e昀昀ect
on the productivity of technology. When expectations
are managed poorly, and so much digital investment
has been made for so little return, the enterprise-wide
enthusiasm required to make these programmes work
just doesn’t exist.
Rather than trying to transform in one huge, disruptive
move, businesses will realise a far better return on
their investment if they break their operations down
into their constituent parts. Only then is it possible
to understand how well (or otherwise) information
flows back and forth across the organisation and
externally. The best way to get a clear picture of this
is to get down into the weeds of an organisation,
down into the operating model and processes that
dictate all activity.
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