Published on 28-Aug-2012
"Using a prepackaged virtualization product such as PureSystems means that we can maintain a greater level of repeatability and system stability, in addition to drastically reducing deployment times." - —Sean Capes, group chief technology officer, Innovation Group
PureApplication System, PureSystems, Cloud Computing, Cloud & Service Management, SmartCloud - Foundation
Innovation Group, an IBM Advanced Business Partner with corporate offices based in the United Kingdom, provides core insurance software and outsourcing solutions to property and casualty (P&C) insurers.
To help property and casualty insurers of all sizes differentiate themselves, Innovation Group wanted to offer its robust insurance suite using alternative technology delivery models.
Innovation Group implemented its Innovation Insurer software suite using the IBM PureApplication™ System offering from the IBM PureSystems product family.
The PureSystems environment will allow Innovation Group to effectively offer its Innovation Insurer software suite on the cloud, providing insurers with a growth platform and a competitive advantage; The company estimates a 96 percent reduction in deployment time, from 13 hours to 30 minutes, decreasing the company’s internal costs.
Innovation Group, an IBM Advanced Business Partner with corporate offices based in the United Kingdom, provides core insurance software and outsourcing solutions to property and casualty (P&C) insurers. With more than 2,400 employees, the company operates in the 13 largest insurance markets across North America, Europe, Asia, South Africa and Australia.
Innovation Group mainly serves the property and casualty insurance business, and its primary offering is the Innovation Insurer software suite. This solution supports the end-to-end insurance value chain, from policy to claims to supply chain management, and also provides analytics for all of these areas.
Insurers seek technology that will help them stand out in the marketplace
As the global economy recovers from the financial crisis that began in 2007, the insurance industry is poised for change. The economic recession exposed the insurance industry’s dependence on investments in written premiums, which had strong profitability and combined ratio results. However, when the financial crisis hit, insurers could no longer rely on these investment returns to essentially hide underwriting losses, exposing insurers’ neglected technology infrastructure, and highlighting the industry’s lack of responsiveness to change. Today’s insurance executives are forced to rethink their business and technology models and find new ways to effectively use their resources to differentiate their companies in the marketplace.
In addition, insurance companies can find it extremely challenging to stand out against the competition because there is so much diversity and variety in the industry. Insurers range in size from extremely small, niche companies to large organizations that write more than USD 1 billion annually in direct premiums. Each market has its own regulatory make-up, product offerings, lines of business (LOBs) and distribution channels.
The primary way that an insurer can differentiate itself is by understanding its customers and then providing those customers with effective and unique products via multiple channels. Innovation Group wanted to be a company of choice, offering alternative solution delivery models, including cloud, and then effectively operating on and supporting those models. This diversity would open up the market for Innovation Group, allowing it to be more competitive, and simultaneously, it would help enable insurers to be more competitive because they could choose the model that works best for them and that helps differentiate them in the marketplace.
IBM PureSystems family introduces expert, simplified technology
Innovation Group implemented its Innovation Insurer software suite using the IBM PureApplication™ System offering from the IBM PureSystems™ product family.
As a software provider, Innovation Group must maintain a high level of proficiency in deployment and infrastructure technologies, but traditional systems proved to be complex, expensive, inefficient and fixed rather than scalable. However, the PureSystems offerings have built-in patterns of expertise. In this case, the technology preconfigures industry best practices, allowing the technology to consistently perform at an optimal level and automatically manage elements of the solution.
PureSystems offerings simplify and automate the Innovation Insurer software suite, reducing the software’s cost and deployment times and simplifying IT environment maintenance. Sean Capes, group chief technology officer (CTO) for Innovation Group, explains, “Using a prepackaged virtualization product such as PureSystems means that we can maintain a greater level of repeatability and system stability, in addition to drastically reducing deployment times.” Further, the PureSystems family of offerings helps improve application performance, scalability and reliability because virtualized systems scale to meet capacity and performance requirements dynamically through vertical scaling of the system.
Advanced technology allows insurers to stand out from the competition
Because the PureSystems product family will allow Innovation Group to efficiently and effectively offer its Innovation Insurer software suite on the cloud, the company will be able to present its customers, small and large, with an additional delivery option. This will provide them with a platform for growth and a competitive advantage for the future. Denise Garth, senior vice president for strategic marketing and industry relations for Innovation Group, says, “The variety of solution options that PureSystems creates is extremely important because it opens up a range of agility and flexibility in implementation and delivery models that insurance companies have not necessarily had in the past.”
Small insurers will have the ability to run a robust software solution on emerging technology. This gives them an opportunity to compete like large insurers because they have greater choice in how to implement their solution, and this solution comes at an extremely cost-effective price point. Likewise, larger insurers will have increased choice for managing their existing platforms, adding a new product to their current solution or entering quickly into a new market that was previously cost-prohibitive or too time-consuming.
Innovation Group expects its customers to see increased ROI as a result of accelerated implementation timeframes and reduced support costs. The company estimates a 96 percent reduction in deployment time, from 13 hours to 30 minutes, decreasing the company’s internal costs. In addition, Innovation Group anticipates seeing the long-term business value of the PureSystems offerings in terms of significantly increased business agility and a reduced total cost of ownership (TCO) in correlation to an insurance company’s growth.
For more information
To learn more about the IBM PureSystems product family, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/ibm/puresystems
Products and services used
IBM products and services that were used in this case study.
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