Insurance: Strategic IT Investment Critical to Competitive Edge

Gregory S. Webber

President

SunGard iWorks

Let’s go to SunGard’s Gregory Webber. Is strategic IT investment for insurance carriers a good idea in this current climate?

There is little doubt that the current economic climate is very challenging for the industry. And, in some cases, the initial instinct may be to wait out the downturn before making longer-term strategic IT investments. However, as more rational and considered thinking prevails, carriers are seeing that the current climate offers an opportunity to rethink their business and operating models and, in turn, how IT can best support the enterprise. Great companies find ways to grow stronger in the good times and in tough times.

What should be the goals?

Three goals come immediately to mind. The first goal is to reduce and simplify the IT infrastructure. When times are tough – it is important to raise the bar when evaluating the necessary versus the unnecessary – and take proactive steps to eliminate the unnecessary. Second, it is important to refresh the IT infrastructure. Sustainability and leverage are the key IT operatives here. This is not about new for the sake of new, but rather thoughtfully striking a balance between the real expense of business as usual and the additional leverage that IT will achieve when the infrastructure is more up to date. Third, it is important for IT to more closely partner with the business and deliver results that support growth in the enterprise, improve the enterprise-wide view to risk management, and better leverage the valuable data already registered in the IT infrastructure.

What should carriers avoid doing?

Insurers should avoid ‘standing still’ or simply making a decision to continue on a ‘business as usual’ path. The climate, though challenging, will ultimately prove to be the best opportunity in a lifetime to think new and to make all the difficult decisions that there was little time for in the past. The fact of the matter is, all companies are experiencing the downturn, but those that act and prepare for the future will be stronger, more capable, and more agile when growth and opportunity return.

Tell us about some of the new, noteworthy capabilities coming down the pike.

Insurance Business Process Management is truly an exciting capability for insurers. This solution will resolve the disparate and fragmented processing environment that has hindered the insurance enterprise and enable an insurer to align their technology and business processing environment to their corporate goals, achieving reduction of costs and realizing operational excellence.