US insurance companies have the opportunity to address high global demand for insurance in a period of rapid technological change – N Ganapathy Subramaniam, President, TCS Financial Solutions
The United States is an exceptional marketplace for the insurance industry. The US market generates almost half of total gross premiums across all OECD countries and leads the world in premiums for non-life insurance policies. The US is also noteworthy for its high level of regulatory complexity, with rates and rules subject to primary oversight by regulators at the state level.
At TCS, we believe that the global insurance industry is at the cusp of two major transitions, with the US market playing an important role in both.
First, the trend toward financial inclusion creates the largest business opportunity that the global insurance industry has ever seen. With billions of people with rising incomes gaining access to the banking and payments networks for the first time, it has now become possible to undertake the greatest expansion of market-driven insurance in history. The latent demand for risk transfer mechanisms, whether to protect against crop failures, car accidents or climate change, has to be considered as nothing less than immense and imminent.
Second, we expect the industry to undergo a large-scale transformation to next-generation insurance products. The application of digital technology to the insurance business has already started to transform what insurance can do for people and businesses alike. We are entering somewhat uncharted territory, and the insurance products that can be created are only limited by the imagination – and by the willingness of regulators and the public to embrace the new possibilities. The insurance companies that will succeed at expanding the possibility set will be those that can combine technical know-how with operational excellence, robust compliance and superior customer service.
With the US as the largest insurance market in the world and among the most technologically advanced, it is self evident that the leading insurance companies in the US will be among those that to deliver next-generation insurance services to the world. Yet it is equally evident that for insurance companies to capitalize upon major transitions in customer demand and technological change, having the right global technology partner will be essential.
Since the 1970s, TCS has been a trusted partner to financial services firms in the US. Now, with TCS BaNCS, we are committed to becoming a premier provider of industry solutions to top-tier US insurance companies. Our commitment is unequivocal, and we have made significant investments into building the delivery capabilities, regulatory expertise and support resources to become a premier provider of core solutions to the US insurance market. We recently signed Zions Bancorporation for a multi-entity core banking solution replacement deal, and we expect to make similar moves in the US insurance market.
From a technology perspective, it is imperative that insurers position themselves as next generation enterprises by applying new SMAC (Social, Mobility, Analytics and Cloud) technologies in the following areas:
- Delivering a superior customer experience
- Strong underwriting and pricing engines
- Online capability to buy and renew policies
- Mobility solutions (a given for the insurance business)
- Robust policy and claims administration systems
- Robust reinsurance systems for premiums and claims
Each of these areas on its own represents a huge transformation effort. Tackling all of these areas at once will require a technology partner with sufficient skilled resources, global reach, domain expertise and a supporting strategic vision. Our clients in financial services benefit directly from what we have learned from customers in other markets around the globe, as well as from customers in other industries such as retail and telecom.
TCS BaNCS was built for flexibility and scalability as a universal financial platform, and supports the entire range of insurance functions generally performed today by disparate systems for policy administration, analytics and multichannel access. Alternatively, the TCS BaNCS platform can be deployed in stages, fostering a smooth transition from legacy operations to a future-ready business and IT architecture. TCS BaNCS is based on object-oriented, interoperable components that can be configured and combined to deliver the power to meet the needs of financial services business of any size, in any region or operating environment. We have demonstrated our ability to handle the most challenging insurance projects in multiple markets and lines of business.
Our success in the US, as in other countries, will stem from our unparalleled capability and capacity to enable our clients to thrive in their home markets, to pursue global expansion, and to capture the commercial benefit of new technologies.
In the months to come, we look forward to having fruitful and productive discussions with you about how we can help you to realize the bright potential of the insurance industry in the global, technology-powered future.