Why interoperability is the next step in digitizing insurance

“It wasn’t because these two entities didn’t use technology. They both used sets of systems. There was no shared system that allowed these two parties to work together and collaborate more deeply,” said Sachtjen.

After more than ten years as a stop-loss specialist at Sun Life Financial, Sachtjen wanted to help build tools that would deepen and streamline collaboration between brokers and carriers. “My own experience with how insurers work with brokers has highlighted the pain points,” he said. insurance business.

“We need to solve these core manual processing issues and allow the two parties to share the system, which is a big problem in the insurance industry right now. and companies are trying to break down all the data silos so that all systems can communicate with each other.”

read more: Average American doesn’t have enough benefits – study

According to Sachtjen, interoperability is key to unlocking the wealth of different systems and data in the insurance industry. Over the past few years, the industry has evolved and invested heavily in modernizing legacy systems, but the next level of digital transformation must focus on integration.

According to the CEO, the employee benefits space is witnessing a “true emergence” of technology that will occur at some point in the benefits mediation process. “At our company, we call this the ‘post-sale decision,’ which is after the employer decides what benefits they want to provide to their employees,” he said. Sachtjen explains.

“There is an acceleration of technologies and companies that have helped us since that moment: benefits management systems, registrants, payroll companies.

Instead, ThreeFlow’s technology focuses on what Sachtjen defines as the “pre-sale part.” At this point in the lifecycle, the client works closely with the benefit broker, who in turn works closely with his partner in the carrier.

As someone who jumped from insurance to technology, Sachtjen was able to see the digitization process from two unique perspectives. “It’s accelerating, but I still don’t think it’s going fast enough,” he said. “It’s fun to watch [the digital transformation] realized in the market. ”

read more: Improving the Insurance Experience for Small Business Owners

Technological innovations in the benefits space also provide insight into the changing relationship between employers and employees. Agile processes allow benefits brokers and insurers to see trends developing in real-time so they can adapt and respond to client needs.

Sachtjen explains: Based on the products they look for in a benefits broker, we find that employers have different ideas on how to offer employee benefits. For example, we are seeing a real move towards self-funding in healthcare. This will help move things forward as employers rethink their benefits structure.

“It will lead to more thoughtful interactions in the market and help us push the technology further. It will be interesting to see the market course correction in real time.”

Apart from these real-time market insights, shared systems help reduce manual work, reduce errors and enable better decision making. Sachtjen said the next wave of innovation will focus on interoperability. “I think operators understand that if they don’t invest now, they risk being left behind,” he said. insurance business.

Leave a Comment