Where do Insurance Technology Firms Play?
I have been noodling about a high-level framework of different types of insurance functionality.
The framework: a portfolio of different types of systems
I believe insurers run their businesses with five major types of systems:
- Systems of Record (SoR): SoR include underwriting, policy administration, billing, and claims. These are the most crucial systems for insurers.
- Systems of Engagement (SoE): SoE include CRM, Customer Experience Management (CEM) systems, or Agency Management Systems/Salesforce Automation Systems. Note: Most (all?) insurers have agency management systems but I question how many insurers have CRM systems. I think I know how many insurers have CEM systems.
- Systems of Enterprise Applications (SoEA): SoEA include ERM, HCM, SCM, and financial/accounting/regulatory compliance systems.
- Systems of Information Governance, Analytics, and Reporting (SoIGAR): SoIGAR include master data management (MDM), data repositories, analytical systems, visualization systems, geo-spatial visualization systems, and reporting systems. For me, this category includes a wide spectrum of data, documents, sound, voice, still pictures, and video.
- Systems of Finance and Regulatory Reporting (SoFR): SoFR include systems which enable insurers to file annual statements, financial reports, and compliance reports to insurance industry, political, or regulatory bodies.
The framework has multiple uses
I use this framework to be able to place a technology firm in one or more of the system areas. The framework is also useful to monitor which system area(s) a technology firm:
- invests all (or most) of its resources
- moves into for the first time or invests more resources
- obtains enhanced or new solutions through internal development or partnerships
- obtains enhanced or new solutions through acquisitions.
What do you think? What system areas am I missing? What other uses do you think this framework would support?
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