Insurance Times Insurance IT Execs Must Balance Critical Core System Functionality with Innovation User Guide

June 3, 2024
Insurance Times

Insurance Times Insurance IT Execs Must Balance Critical Core System

Functionality with Innovation

Insurance Times Insurance IT Execs Must Balance Critical Core System
Functionality with Innovation

The firm’s chief executive, Mike Rosenbaum, described core IT systems as

the ‘heart and lungs of an insurance company

Information technology (IT) systems are often viewed as the foundation of a business’s operations. However, juxtaposing this “heart and lungs” functionality with innovation that can underpin organizational ambitions can be a dif cult balancing act for insurance firms – yet this is the challenge that software company Guidewire is keen to assist with. Addressing IT executives at Guidewire’s Connections 2022 conference at the Aria Hotel in Las Vegas last week (23 October 2022), Guidewire’s chief executive Mike Rosenbaum said: “You have to maintain these incredibly reliable, incredibly important core [IT] systems. “Without them, you do not exist, you cannot do business. They are of [a] critical system. And, at the same time, you are [often] asked to continually innovate, continually change, continually try new things. “Balancing these two things is incredibly dif cult.” Rosenbaum described insurers’ core IT systems as the “heart and lungs of an insurance company” – however, industry-wide developments such as managing growing cyber risks and in action, maintaining products, or experimenting with new distribution models means that reliable IT systems, in turn, must evolve to keep pace with business demands. He believes the answer lies in the adoption of “agile” software platforms that are “built to support a complete insurance lifecycle”. Read more… Paul Mang: Addressing big, evolving insurance risks is `meaningful work’ Not subscribed? Become a subscriber and access our premium content Explore more content here

Complete insurance lifecycle

For Rosenbaum, this is where Guidewire steps in. He thinks that agile software systems, such as Guidewire, can enable insurance rms to offer the right product through the right channel, at the right rate and price, alongside the right claims experience, if needed. “This is the vision behind Guidewire’s product strategy,” he said. “We focus speci cally on creating this complete insurance lifecycle.” He continued: “Our cloud transformation continues to gain momentum – we continue to be more and more con dent that we will successfully transition this entire industry to the cloud, [creating] a better approach for solving this con ict [between innovation and reliable core IT systems].”

Read: Insurers must deploy capital `con dently’ to solve cyber cover supply and demand imbalance Explore more news content here

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