Coretech Insight Report: Insurers Can See Up to $25M Revenue Gain

A Coretech Insight Study Commissioned by Socotra

Insurers know that speed and agility are key to growth. But they struggle to quantify the value of investing in new technologies in terms of speed-to-market and revenue. To address this challenge, Coretech Insight, an independent advisory firm focused on core technology for the insurance industry, conducted a breakthrough study modeling three real-world scenarios to assess the economic value of speed-to-market, using publicly available industry and government data and validation by senior industry participants.

The analysis compared product launches for incumbent systems against new cloud-native agile platforms and found that insurers that launch products faster by deploying cloud agile technology are able to generate a revenue gain of as much as $25 million over five years.

What will you learn from this report? You’ll get the detailed information supporting these results and learn how findings like these were determined in this analysis:

  • The benefits of shorter time-to-market exceeded the costs of implementing and operating new cloud technology by a wide margin—as much as 40 times the cost of implementation.
  • Cloud agile technology can trim product launch times to a matter of months versus typical timeframes of a year to 18 months for outdated systems.
  • Cloud agile platform product launches enable insurers to capture revenue that would otherwise be lost to extended launch timeframes.
  • Insurers are forfeiting millions of dollars in new premiums due to delays common with incumbent systems.

Get your copy of this ground-breaking, must-read study today.

How Socotra brought agility to Australia’s largest insurer

To meet the evolving needs of the modern consumer, IAG Satellite, the nimble innovation-focused division of Australia’s largest insurer, sought to accelerate IAG’s insurance business by developing flexible digital insurance products.

In January 2019, IAG Satellite began searching for a powerful insurance technology partner to build out their new Accelerator model. After a series of screenings and proofs of concept, the company selected Socotra to handle the model’s underwriting, billing, platform security, and policy management tasks.

 

Ten months later, in October 2019, IAG Satellite launched a new direct-to-market product called Poncho Insurance. Built on Socotra’s cloud-native platform, Poncho Insurance helps Australians protect against the unexpected with easier, simpler, and more flexible car insurance. The digital auto insurance product offers a multi-car monthly policy and payment plan that policyholders can quickly update or cancel through a user-friendly online interface.

[Socotra’s] platform is super flexible and low-cost, allowing us to continually improve the product and deliver it at a great price to customers. – Phil Wilson-Brown, IAG Satellite executive manager

IAG Satellite’s innovative Accelerator model makes the most of Socotra’s plug-and-play architecture and configurable APIs, allowing the company to easily develop, deploy, update, and adapt new insurance products in response to demand. In recognition of the Accelerator model and the impressive operational efficiency of its first product, Poncho Insurance, IAG Satellite received the Innovation Execution Award at the 2020 Celent Model Insurer Awards.

To see the key results and learn more about how IAG Satellite worked with Socotra to launch a flexible digital insurance product in just 10 months, sign up to download the full case study.