Point of view

Digital Insurance as a ServiceNot just a technology shift, but a case for business change.

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In the Australian and New Zealand markets, regulatory guidelines are already shifting to be pro-digital. The merger and acquisition activity in the latter half of 2017 is triggering significant IT change programs that will inevitably look to include digital transformation; so 2018 is shaping up to be a year of change.

DXC is well placed to help insurers manage this technical and business change, with IT know-how and hands on customer experience (demonstrated by our business process outsourcing operations which covers policy servicing and claims).

To capitalise on digital benefits, such as a streamlined value chain, insurers need to transform themselves and align services, processes, and technology to create experiences that delight their customers. It’s not simply a case of automating existing processes, since these have developed over years of workarounds and legacy constraints. Instead the transformation must respond to the market.

Insurance is undergoing significant change in terms of digital transformation, and aspires to increase automation, improve the quality of information, improve accuracy in risk pricing, with attention to administration and distribution costs – all enabled by a number of modernisation initiatives. DXC’s Digital Insurance as a Service (DIaaS) platform (launched in 2017), isn’t just a software solution, but reframes the “Art of the Possible” for business organisational change.

Our experience shows that moving to a digital platform, with the accompanying benefits of increased reach, reduced IT spend, greater agility and, data analytics for actionable insights; instigates enormous change for an organisation. Both business and IT teams need to re-orient their people and teams to be more agile and customer-centric, which results in a new operational model and business focus.

Business ChangeTraditional insurers need to deal with their legacy paper-based processes and need to realign these processes so they focus on the customer. DXC has already helped clients make the shift to creating better user experiences by aligning supporting systems and as a result increased quotes by 300%, and conversion rates by 40%.

Another business change which will occur as part of digitisation, is the uptake of automation and the use of robotics. These enabling technologies mean that insurers can achieve greater productivity or reduce headcount. This also inherently changes the work that people are required to do, resulting in changes to the required resourcing mix.

The digital disruption wave is pushing the insurance industry towards a digital future; and with disruption, comes new opportunity – particularly for the organisations who are bold enough to lead or follow fast.

Digital Insurance as a Service – Not just a technology shift, but a case for business change.

Point of view

IT ChangeShifting to DIaaS, also means large changes for the internal IT organisation. As DIaaS is adopted, IT will need to support a bi-modal landscape, with products and services being delivered on both legacy and DIaaS technology. As more processes and systems leverage the cloud platform, the role of IT transforms – from one of delivery, to one of stewardship. Architecture and integration skills will increase in importance, as will collaboration and communication skills.1

Organisational ChangePeople and teams will need guidance and training to work in new, and more agile ways. The mindset shift to creating value for the customers (whilst supporting customer focused processes that are flexible, and change to meet consumer needs), isn’t easy and may take some getting used to. DXC can help guide insurers through the organisational changes. Through our knowledge implementing DIaaS and combined with our Digital Workplace offerings, insurers will know what to expect and where to focus.

Tips and Tricks for a successful DIaaS ImplementationImplementing DIaaS has a big change impact on the business, so it is important to be conscious that parts of the organisation may resist its implementation. Employees may worry about their job security or be uncertain as to what their future job will entail. Strong sponsors and organisational change management support will be critical during deployment.

DXC has found that the following factors influence successful implementation:

• A bold, visionary sponsor who can tell the story and benefits of DIaaS for the business

• Senior management involvement, support and leadership – especially as complexities and legacy lines of business and IT are crossed

• Change champions throughout the business to help keep people focussed on the benefits of DIaaS and support them through the journey

• Incremental implementation plans that support both the business, technical and behavioural shift required for DIaaS

• Programs that help business and IT peoples’ mindset shifts to support agile ways of working and truly focussing on the consumer’s experience

• Robust communication, education, and training for all employees to ensure transition is managed as effectively and efficiently as possible, and that benefits are realised in a timely manner

Point of view

1 From an IT perspective, moving from in-house IT to outsourcing, and now to a consumption based model will change the role of in house IT. Instead of being the “doers” and “owners” of the systems, they become the “stewards” and “custodians” of the IT landscape; ensuring adherence to governance processes, security protocols etc. They need to think of themselves as the owners of IT enablers as opposed to the owners of IT systems. This is a huge shift, as technical skills get outsourced, architecture and design skills come to the fore. The need for collaboration is an imperative.

Learn more at www.dxc.technology/services

Point of view

www.dxc.technology

About DXC Technology

DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and public sector clients across 70 countries. The company’s technology independence, global talent, and extensive partner network combine to deliver powerful next-generation IT services and solutions. DXC Technology is recognized among the best corporate citizens globally. For more information, visit www.dxc.technology.

© 2018 DXC Technology Company. All rights reserved. MD_7931a-18. March 2018

Contacts and more information For more information, or to find out how DXC can help you with organisational change challenges please contact:

Cindy Lee Senior Digital Transformation Consultant clee67@dxc.com 02 9034 2345

How DXC can helpDXC has teams to support the organisational and employee aspects of a move to a digital future. If you need assistance to get started or fine tune your current digital strategy; we can partner with you to provide support on:

• Organisational change management

• Digital strategy

• Customer experience and employee experience impacts