We live in a digital world, where information is readily available and consumers have moved from being information-dependent to proactive and self-aware. The insurance industry being in the service sector thrives greatly on consumer satisfaction and being passive in approach can damage this equation. Majority of insurers are sustaining on an old legacy framework which is difficult to work with, scale and makes it difficult to sustain in a technology-first landscape.
Shifting from legacy frameworks however can be extremely time-consuming and difficult as insurers have decades worth of data stored on these frameworks, while completely removing them might not be possible for most, shifting to a hybrid IT set up with the help of microservice API’s is the one way insurers can guarantee protection in the world of InsurTech.
Essentially microservices are applications that are created/coded to perform a specific task, these with the help of API’s can be connected to create a journey that fits the needs of an insurer in a more personalised manner as compared to a monolithic software. With information-hungry consumers, insurers need to be relevant and microservices can make it simpler for them to add tools and remain tech-savvy. Microservices make it quicker, easier and more innovative for insurers to function and they don’t require insurers to waste time in completely replacing their legacy framework. They’re built to help modernise the legacy frameworks and here’s how this is achieved:
- Developer friendly: Since the services are now divided into independent apps, they’re easier to work around. Developers no longer need to deal with lengthy codes for the entire system, they can directly focus on reworking the microservice that needs attention, this allows for more innovation and growth as individual services can be worked on simultaneously by different teams.
- Easy to scale: Monolithic applications can be difficult to scale since they require to be balanced and developed overall, whereas microservices function on easy scalability, focusing on individual needs, an insurer can scale their operations quickly by adding extra software and integrating them to his/her tool kit and service clients better. Whereas old, redundant apps can be easily removed and replaced without affecting the services and functionality of everything else.
- Agile innovation: Quickly adapt to the changing needs of your customers with innovative apps that provide a user-friendly interface and accommodate for new updates in the business industry.
- Real-time benefits: With mobile and web-friendly interfaces insurers can stay connected with their customers' needs in the real-time and use this to facilitate services to them more swiftly. For example, microservice apps can notify you when a customer’s child is old enough to be enrolling into college and allow you to directly notify them of new policies that might suit them before they realise this need and start shopping themselves. Working in real-time helps insurers stay more in tune with the needs of their customers and leads to better management of these needs.
- Deploy services faster: The breakdown of services into smaller segments makes it possible for teams to be broken down and allows for testing to take place alongside development, this can help in quickly programming services that fit a customer's requirements and deploying it, take the current pandemic, for example, the insurance sector as a whole was shaken up with the crazy rise in demand for health insurance, microservices allow for coming up with new applications to help provide customers with the information on what policies would be relevant for them, how they can be processed and how to sign them up more quickly. Microservices allow insurers to adapt quickly to opportunities.
- Integrating blockchain: Customer information can be decentralised and available to multiple platforms/networks for use, the changes made by each application can be recorded and stored in one platform, this is all done in a very secure manner keeping it safe from hackers. Blockchain can essentially create a digital ledger of the financial records of each consumer, facilitating transparency and ease of use across microservices.
Microservices can be looked at as tools to assist insurers in keeping up to date and extracting maximum potential from technology to extract data from legacy systems, interpret this data to analyse consumers needs and advise them accordingly. This is a holistic consumer experience that provides a personalised and varied platter of services with the help of advancements in FinTech. The InsurTech industry is booming with developments, figuring out the needs of your consumers can help realise the needs of your business, accordingly, apps and microservices can be selected and tailored to integrate a journey that is unique for max optimisation.
Get in touch with us to know more about leveraging microservices, to pay lesser premiums and receive more coverage for your services.