Mark McLaughlin (pictured), IBM Insurance General Manager, said:
It doesn’t seem like much is known about it.
“The most common complaint we hear from customers, InsurTech partners, and salespeople is, ‘I didn’t know IBM did that,’” McLaughlin said at the recent ITC 2022 conference in Las Vegas. rice field. “I don’t think we’re saying as much as we should.”
Speaking at the recent ITC 2022 conference in Las Vegas, McLaughlin said the company’s business in the insurance industry is very substantial, helping insurance clients bring software, data, AI, security and services together. I explained that IBM also offers process consulting, process automation, technical assistance support, and hardware capabilities.
IBM’s insurance coverage includes personal insurance, commercial insurance, life insurance, group insurance and reinsurance, McLaughlin said.
Prior to that, McLaughlin spent about six months in his current role at IBM in R&D strategy for the insurance industry. Going back further, he is a veteran of his IBM insurance industry with 15 years of experience.
beyond the mainframe
McLaughlin said that while many insurers still use mainframes and are investing heavily in core operational systems, they are considering cloud-based applications and customizing that technology to their needs. Some insurers say they are trying to find a way. Additionally, some companies are partnering with insurtechs to leverage their distribution, digital capabilities, models, and new data sources. IBM works in every scenario, he said.
“We catalyze [products and services] On top of that,” McLaughlin said. “IBM is really investing heavily in providing a kind of connecting glue that will help connect legacy systems that you still need and modernize those that you decide you don’t.”
The goal, he said, is to connect these pieces of technology to the data of the insurtech “layers.”
IBM is also helping insurance companies automate, he said.
“I have automation tools, AI models, various AI capabilities, but I need to deploy them to an average of 14 policy management systems that insurance companies operate,” McLaughlin said.
IBM has provided business consulting to insurance companies via database tools to help them solve challenges such as pricing efficiencies. With the advent of InsurTech, IBM has become more focused on helping customers partner with startups. McLaughlin explained that insurers have a lot of things they need help with in this area.
“People think insurtechs are going to replace insurance companies…but honestly, most of them partner with insurance companies to build better mousetraps to get claims out. We just want to do it faster or market it better,” McLaughlin said. “We are about how you connect [them] quickly. The number one reason insurance companies complain about us is our speed to market. They know they have to deploy value-added services. They know they want a mobile experience that connects them with their insurers. Doing that and the IT sprawl that insurers have today – it’s really hard and takes a long time. “
Legacy and cloud
In the era of InsurTech, some insurers are getting rid of outdated legacy systems and replacing them with cloud-based platforms that are easier to adapt and modernize. Insurtechs, on the other hand, often argue that these old networks are obsolete and unnecessary in today’s market. According to McLaughlin, removing the old system and replacing it with the new one is not easy.
You need to ask yourself, “What are the characteristics of an insurance workload?” and “Where is the best place to run that workload?” That world will have a mix of public he clouds, private he clouds, mainframes and specialized data he appliances in existing data centers,” he said. “Most insurers report it as a future.”
At the same time, McLaughlin has refused to advocate the technology that is a must-have for insurers in the InsurTech era. Instead, he urges insurers to avoid “locking” themselves to rigid technology choices.
“Stuck in one core or one cloud limits our ability to compete with insurers,” says McLaughlin.
AI and in-depth data analytics are particularly useful these days in helping insurers strengthen their customer base, he added.
“We need to know our customers better [and] We need to know the risks better,” McLaughlin said. “We must be able to deploy these insights to help insurance and healthcare distributors deliver insurance more effectively.”