Potential Pitfalls Insurers Forget When Building an Automated Collaborative Enterprise Architecture.

Research indicates that by 2028, the role of AI in the insurance industry is expected to hit the USD 6.92 billion mark, growing at an ambitious CAGR of 24.08%.  

A critical contributor to this digital growth is the insurance industry’s focus on building an Automated Collaborative Enterprise Architecture (ACEA). A digital enterprise that leverages technologies such as artificial intelligence, big data, and the Internet of Things (IoT) to improve their operations, enhance customer experience, reduce costs, and adapt to regulatory environments. 

Building an ACEA requires a lot of planning, execution, and ongoing maintenance to ensure it delivers on its promise of increased efficiency, productivity, and collaboration. However, there are some potential pitfalls that insurers might forget to consider in their efforts to build a digital enterprise  

The Human Factor:  

While Insurers are focused on designing an ACEA that automates and streamline processes, it’s important not to forget the role of human expertise, feedback, decision-making, and collaboration in the ACEA framework.  

Data Quality:  

The ACEA will rely heavily on accurate, high-quality data to function effectively. There is a critical need to have a proper data governance process in place. So how do insurers ensure they maintain data integrity, data privacy, and security, and avoid duplication and inconsistencies? 

Legacy Systems Integration: 

The insurance industry has for so long depended on deeply integrated legacy systems. When building the insurance ACEA, insurers should consider how these legacy systems will integrate with the new digital architecture while ensuring minimal to no disruptions to existing operations. 

Building an ACEA is not a one-time implementation project. It requires ongoing maintenance, updates, and upgrades to ensure that it remains relevant and effective. It will also include the constant need to train and upskill staff to work effectively with the new system. 

So how are insurers strategizing for ongoing maintenance and support? How do insurers find and adapt reliable and agile solutions to these complexities involved in building an automated collaborative enterprise architecture? How can human input still be valued and leveraged in the system? 

Our Team at Insurance Back Office Pro (IBOP) will be present at the 2023 Accelerate Conference from May 7th through 10^th at booth #206 answering questions about the above challenges and providing insights into identifying the right technologies and tools that will ensure an ACEA plan is effectively adopted and maintained. Book your meeting here.