Today, tomorrow and a digital roadmap
Envisioning a Digital Roadmap for the Insurance Industry
Realising the vision of next-generation digital insurance through computable contracting will involve step-wise improvements over several years. Importantly, multiple steps will need to be taken that are headed in the right direction, so that measurable progress is made and investments are not wasted.
Overarching Digital Strategy
Moving from a ‘platform focus’ to a value-chain wide, digital-objects focus; and from ‘form-based’ to generative standards
Isolated digital platforms with little structured data, mainly hidden logic, and contracts in ‘pdf form’
Partial data structuring and API-driven platform integration with some contract standardisation
Contracts as ‘rich, digital objects’ at the heart of a digitally integrated value chain
Data Science
- Structuring of data using data schemas, knowledge graphs
- Explicit expression of embedded contract logic
- Moving from form-based to generative standards
Pockets of structured data, often adopting different structuring methodologies
More structured data; use of domain-specific languages for contract logic
Data standards that support modular object creation (‘lego-style’) with contract design tools
Digital Infrastructure
- Integrated business processes that support overall digital strategy
- Distributed data management solutions with comprehensive access and change control
Data has be be entered multiple times into different platforms with limited sharing standards
Increased use of APIs to facilitate sharing of structured information between platforms
Multiple platforms / plug-ins with managed access to more complete contract representations
Digital Contract Design
- Multi-form contract component representation
- Contract building using modular approaches
- ‘Low-code / ‘no-code’ contract design to facilitate broader industry uptake
Contracts are typically ‘word-based’ documents from which data is drawn, often manually
Some use of ‘smart’ contract templates with specified data fields
Contracts are fully computable for data and logic using appropriate form of representation
Value Chain Integration
- Pricing/negotiation through to binding
- Payments and policy administration
- Portfolio management and risk/capital modelling
- Claims management
Platforms not well integrated and requiring significant manual data input and processing
Improved data standards to promote more data sharing across value chain
Rather than the ‘platform driving the data’, the future is more about the ‘data driving the platform’
Legacy Contract Alignment
- Metadata development strategies
- Structured data capture (specified search)
- Data extraction using machine-based learning
Contracts generally remain in their original form, but with the addition of metadata
More widespread adoption of structured data capture - automated insertion into templates
Full legacy contract conversion into computable contract form
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