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New service provider pick highlights ongoing digital transformation in the insurance industry
by Rajeeb Gurung | August 4, 2022 | bobsguide
French insurance company AXA has entered into a multi-year partnership with NASDAQ-listed IT consultancy Cognizant to support and modernise the IT operations of the insurer’s UK and Irish businesses.
As part of the agreement, Cognizant will operate, streamline, and transform the insurer’s legacy technology into a digitally enabled and agile IT environment.
Cognizant will provide managed services and cloud migration services to the insurer.
Additionally, AXA UK and Ireland will benefit from integrated IT services spanning service desk support and maintenance, end-user computing, application development and maintenance, cloud operations and IT infrastructure management.
According to Shali Vasudeva, COO of AXA UK and Ireland, AXA selected Cognizant as its technology partner for its “track record, expertise and behaviours in helping organisations simplify delivery and manage IT environments.”
“AXA UK and Ireland’s priority is providing customers with the choice and flexibility that meets their insurance needs. The foundation to deliver that is a modern, digital IT infrastructure that enables us to make data-driven business decisions,” she added.
AXA’s collaboration with Cognizant builds on the insurer’s Driving Progress 2023 strategic plan unveiled in 2020 that sees digitalisation as one of the key areas of focus for the company.
In June this year, the company further strengthened its commitment to digitalisation with the launch of a strategic program to build a Digital Commercial Platform. The insurer intends to use the platform to leverage the combination of real-time data and analytics.
Digital transformation can add value to insurers
AXA’s push for digitalisation in the UK and Irish market underscores the ongoing transformation in the insurance industry accelerated during the pandemic.
According to McKinsey, the shift to digital provides insurers with an opportunity to improve productivity and reduce operational expenses by up to 40% by 2030 whilst simultaneously improving their customers’ experience.
The move towards streamlined digital services also looks to address the friction in the customer journey that has seen them switch carriers for better services.
According to a recent survey by Accenture looking at claims experience, nearly 30% of dissatisfied claimants had switched carriers in the past two years, with another 47% considering following suit.
The report also highlighted that poor claims experience could put up to $170 billion of insurance premiums at risk, signalling the growing need for insurers to invest in upgrading their technologies.
Insurance firms and insurtech collaborate for better services
To retain customers and maintain their standings, insurance companies have been advancing the transition of their legacy estate, while looking at partnerships with insurtech companies to expand and improve their offerings.
In July, reinsurer SCOR partnered with insurtech Concirrus to use the latter’s data modelling capabilities to improve loss ratios within SCOR’s marine line of business.
In June, insurance behemoth Alliance partnered with insurtech Coalition to provide the latter with multi-year capacity for US and UK cyber insurance programs. In July, Alliance co-led a $250 million Series F funding round for the insurtech to accelerate its growth and back its international expansion.
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