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Business Reporter Interview: Systemorph & the Insurance Data Management Revolution

Data management for the insurance industry is going through a revolution, and Systemorph’s unique solutions are leading the way.

That’s the focus of a video interview with Systemorph CEO and Founder Dr. Roland Bürgi and Head of Marketing Dr. Daniel Trzesniak, published by Business Reporter, an award-winning UK-based business publication.

A wide range of factors are driving the need to change how data management is conducted in insurers.

“I think the main difference is the speed with which they have to deliver information,” Roland told Business Reporter presenter Alastair Greener.

Speed & Agility

“Currently very often it’s very difficult to produce reports,” Roland explained. “They have to literally do a data call in the entire organization, it takes two or three weeks to assemble all the information from everywhere, and this time is simply no longer there.

“They have to be much quicker, data needs to be available at the fingertip, and they need to be able to answer questions even if they were not anticipated.”

So much of the data collection process is manual, Daniel added, the complexity of assembling reports becomes quite complex. “It’s people sending files around or spreadsheets, and then collecting them, trying to assemble them together, and trying to bridge this gap between the data sources,” Daniel said.

Integration Challenges

A common strategy for attempting to solve the data management problem is to integrate the various systems and elements that serve as sources for the data.

But this is extremely hard, Roland said, because of the lack of a consistent language and underlying concepts and how they are handled by the various sources.

Roland compared the situation to the Tower of Babel: “Everyone speaks English, everyone tries to say the same, but you don’t understand that you mean the same. There is a need to align this kind of language.”

Daniel gave the example of insurance policy administration systems. “They have to refer to certain code tables like a list of countries, like lines of business, or currencies, et cetera. So if you use different codes for this data then you have a problem when bringing the data together. …

Even longstanding terms of the industry—like a premium—might become different when translated into data management realm. “For one department it might mean something. For another, it might mean something completely different,” Daniel said.

The Wave of Change: No More ‘Paper Towers’

These complexities are compounded by the traditional way of defining and building out data management systems and processes.

These traditional approaches will start with lengthy, written out descriptions and diagrams that represent abstractly and theoretically how data should be brought together and analyzed for decision making. Then attempting to build out the systems to support those theoretical ideas becomes very time-consuming and costly and most often doesn’t end up functioning as desired.

“What we notice in practice is that all these ‘paper towers’ fall apart when you implement them,” Roland said.

Systemorph is helping drive the data management revolution by completely reversing the traditional approach.

Instead of tying up business managers with endless theoretical exercises and planning, the Systemorph approach is to get them hands-on with functioning software in days or weeks. Then, thanks to the flexibility and adaptability of modern software design and cloud technologies, the solution can be easily iterated and refined to truly meet the business needs.

“Essentially we have the business user always look at working software,” Roland said. “No theoretical views on theoretical diagrams, but actual clicking around, figuring out where the problems are, giving immediate feedback. Then within a couple of iterations we can deliver very high quality data models and software solutions.”

Daniel added that this iterative process prevents errors in design from becoming major problems and deficiencies once the system is operational.

The Data Management Revolution

Systemorph’s leadership role in the data management revolution stems from its solution to these problems. Consistent language and usage across data sources are possible with the company’s flexible modeling and simple integration is made possible by the solution’s cloud technologies.

Ultimately the company’s Vertex platform enables insurers to automate key steps in the data management, data gathering and reporting processes, eliminating inefficiencies and delivering better data for better decision-making.

“People need the solutions much quicker.”

Dr. Roland Bürgi, Systemorph CEO

There is a perception that insurance companies are conservative and so are resistant to change. But that view is outdated.

“People need the solutions much quicker,” Roland said, adding that the appetite for lengthy, multi-year, high budget data management projects is disappearing.

“We notice that the business actually pushes for it. We also notice that the business is less ready to accept costly, clumsy systems.”

Part of the change is driven by business manager’s exposure to what modern technology can do. “In their private lives, they use very modern solutions, they have modern technologies,” Roland said. “The discrepancy between what they use at home and what they use in the office becomes bigger and bigger.

“We see that the business is pressuring also to get modern technology, nice looking technology, fast technology… as they have it at home, they want to get it also in the office.”

Powerful ROI

Roland and Daniel described two important areas of Return on Investment that insurers can expect when they transform data management.

The obvious benefits stem from less costly and time-consuming data management system build out, with Systemorph’s approach delivering results months or years earlier than traditional development approaches.

But a critically important area of ROI is in the quality and consistency of data being used to make business decisions.

Roland explained: “There is the big money, the money you can lose because you make bad decisions, because your data basis was simply bad … or your data quality is completely unknown, and you don’t know how to take the decision.

“If you take the wrong decision, then the financial loss can literally be almost any amount.”

The trend toward nimble decision making recognizes the essential, critical value of data in the modern organization, driving decisions about strategy and the future of the company, Daniel added. “If your basis is not solid, you cannot quantify how good the data you have is, then you end up making bad decisions,”

In the end, Roland and Daniel said, the data management revolution for insurers is resulting in end-to-end solutions that no longer burden business managers with software development tasks. Systemorph’s solution leverages modern technology to allow business managers to focus on the business not on worrying about building out systems.

Learn more about Systemorph’s revolutionary approach to data management for insurers.