The convergence of disruptive business models (e.g. peer-to-peer insurance), emerging technologies (e.g. IoT, wearables) and the consumerization of insurance has dramatically changed the role of the CIO. Insurance companies have proven ineffective in delivering innovative technology solutions to their stakeholders. Where once CIOs focused on developing compelling technology solutions to create competitive advantage, future winners will change their focus to integrating a combination of marketplace solutions to create competitive advantage. With this new focus, a CIO will mobilize his or her organization to integrate legacy assets, vendors, partners and new players together to provide new product and service offerings across the functional value chain.
Several market demands have proven difficult for carrier technology organizations to meet and exceed: consumer friendly user experiences, environments to test new products quickly, ability to combine compelling treatments, etc. However, CIOs have found themselves hamstrung by their circumstances to brings these demands to the market: an aging workforce skilled in supporting legacy environments, and a focus on what “can be done within legacy constraints” instead of on “what should be done.”
In response to these circumstances Chief Integration Officers across the insurance Industry are focused on acceptance of their legacy environments, and looking to augment capabilities through integration of new capabilities through vendors, partners and stakeholders.
- Integration of Cloud-based solutions
- UX components available in the marketplace (e.g. Spraoi)
- Looking at new strategies with partners (e.g. ML, BPO)
Among the new roles CIOs are expected to take on in the current disruptive technology environment is that of Chief Integration Officer, connective tissue among many executives, strategies, and agendas.” Establishing integration between legacy systems of record and the latest cloud-based applications and third-party environments right is a starting point. CIOs can then build upon that technical foundation to integrate ideas and processes across the organization to increase efficiencies and create innovative new business capabilities.