Why insurance companies are collaborating with technology companies
Insurance companies are increasing their collaboration links with tech developers. This has stunned many and seems to be an odd pairing. What is surprising is that there is sound logic behind this trend. The increased collaboration between technology companies like Oracle with insurance companies is aimed at increasing the efficiency and revenue of the insurers. The product that has resulted from this alliance is a range of Oracle insurance solution. They range from the provision of traditional technology solutions such as dedicated servers to modern solutions like a mobile application for insurance companies.
Insurance companies have realized that the marketplace is changing at a very rapid rate. For them to succeed, it means to stay ahead of the curve through partnering with IT companies to streamline their internal operations. Technology runs with insurance business cohesively promoting efficiency. What have been the advantages wrought from this?
One, mobile applications for insurance companies are driving increased revenue. These applications enable business to provide new services alongside their traditional offerings. They also enable the business to market its services to their consumers. This creates a constant stream of interaction and information going between the insurance company and their target market. The mobile applications can also be designed to provide their users with a catalogue of the available products. This not only helps in the dissemination of information but also eases the labor costs by reducing the number of salesmen needed. Such reductions in cost and increased revenue stream mean insurance companies using these services have better margins.
Two, oracle insurance solutions are rules based. They integrate current industry regulations into their architecture. This architecture has offer several advantages for the end user. One, their pre-built nature increases the speed to the time value of the company. They enable risk mitigated integration of the business processes of the insurer which results in higher efficiency. Two, they optimize the functions of the business by eliminating inefficiencies within the model created. This means the insurer can function internally with boosted performance. Being rules based also means that they ensure internal compliance, which is crucial in such a risk adverse industry. The client sees the effect through better service delivery and lowered costs. The solutions provided by Oracle for insurance companies work from the background. This means that the business can maintain its image while providing better services to its clients. For this reason, every insurer must seek to make this partnership.