CIOs are evaluating and implementing technology capabilities that hold true business value for their organizations. A number of CIOs are taking value to the next level and looking to apply technology that provides competitive advantage through innovation, as we are starting to see in areas such as the application of telematics. As insurers are positioning themselves to take advantage of new products and distribution channels, as well as continuing to look for process and technology efficiencies, the need to establish new business models is imperative. Many CIOs are looking to service-oriented architecture (SOA) and Web services to support business change and technology reuse, as well as to support the flexibility and sharing required by some of these new business models.
While looking for strategic opportunities to add value and innovation, CIOs are assessing the core competencies available within their organizations today, as well as those required for future growth. For many, this involves strengthening the business and IT capabilities of underlying competencies in areas such as claims, customer service and underwriting. From an IT perspective, leading insurers are aggressively developing SOA capabilities and implementing SOA methods. Once insurers identify their SOA strategies, they should assess their current SOA maturity and develop a road map to drive SOA capability and governance through education, knowledge sharing, cosourcing and/or outsourcing. The adoption of SOA by a number of leading insurers continues to gain momentum and will ultimately help insurers drive flexibility, reuse, speed to market, cost efficiency and innovation.