In today’s fast-paced world, the insurance sector stands out for traditionally being slow to embrace digital transformation. Modernization has always been one of the challenges this industry has faced, and forward-looking insurance firms are well aware of this need. A recent Deloitte report states that insurers are increasingly becoming reliant on emerging technologies such as artificial intelligence, predictive analytics, and machine learning to boost efficiency, strengthen cybersecurity, and undergo enterprise-wide scaling. However, the report notes that most firms must also work on improving customer experience by offering customizable services and automating back-office operations. Companies need to invest in digitalization and implement a comprehensive tech stack upgrade to remain competitive and meet the evolving demands of customers.
One solution to this challenge is greenfield development. Projects of this nature are implemented from the ground up and require developing systems from a clean slate. This strategy entails starting from scratch—from designing the digital framework to scoping and strategizing technology deployment. Greenfield projects may include IT infrastructure, websites, software, operating systems, networks, and cloud migration. Compared to the brownfield approach, where developers build on legacy code, greenfield processes give insurers the flexibility to evolve their digital infrastructure in line with customer needs while preventing unnecessary costs.
A More Customer-Centric Approach
The greenfield approach builds around the customer, not the technology. Through this strategy, organizations can determine customer needs, evaluate the scope of the project designed to meet those needs, and customize approaches. Greenfield processes invite opportunities to build a digitally enabled IT ecosystem driven by emerging concepts like cloud infrastructure and API integration that deliver value-added services.
A customer-centric greenfield strategy enables insurers to automate procedures, improve response times, and implement contactless capabilities that are compatible with policyholders’ desired channels. Firms don’t have to worry about compatibility issues; by eliminating the “mix-and-match” approach with legacy technology, customers can view policies, file claims, and pay bills through a unified digital insurance platform. Automating business operations will drive improvements in claims processing, underwriting services, and customer experience.
Capacity for Customizable Solutions That Can Be Quickly Implemented
Organizations utilizing the greenfield approach don’t inherit any of the problems from their previous architecture, which means more leeway to personalize their tech requirements. By reevaluating process flows, firms can remove limitations and improve usability and overall performance. Insurers can quickly adapt to business and regulatory needs through customizable solutions that don’t depend on architecture that will eventually turn obsolete.
Greenfield projects also encourage innovation. Because organizations no longer rely on old architecture, they have the freedom to “future-proof” their technologies and take advantage of the cloud. Greenfield initiatives also help firms speed up time-to-market, allowing them to quickly roll out insurance products, implement updates, and use agile techniques to adjust to emerging capabilities.
More Flexible and More Agile Operations
The main selling point of greenfield initiatives is that they give organizations the ability to work without their aging technology. Without obsolete systems and antiquated code, firms can undertake a flexible, standards-based approach to project design that doesn’t require much institutional knowledge. Without the need to depend on outdated designs, developers can build new systems with higher fault tolerance, leading to lower maintenance costs.
By shifting to an open, cloud-based environment, insurance firms are no longer tied to old infrastructure for mission-critical tasks. The connectivity of a cloud environment allows firms to efficiently streamline insurance management, improve customer access to insurance products, and quicken bancassurance procedures.
An optimized infrastructure also frees up the IT team’s time to innovate. As teams move away from time-consuming tasks, they can focus on other aspects that contribute to the enterprise’s growth.
Potential for Scaling
Cloud migration is one of the first things that come to mind with “digital-first” strategies, and it’s something that can be easily supported by the greenfield approach. With performance and size requirements built into the project design, firms can easily scale up or down as necessary.
Using the greenfield technique to select and deploy a policy administration system (PAS) mitigates risk in cloud migration efforts. Developers can use the Minimum Viable Product (MVP) approach together with a greenfield strategy to test and constantly evaluate a platform before scaling. By scaling front- and back-end operations, insurers can widely implement beneficial features like self-service apps and IoT-driven device compatibility.
Tons of Benefits, but Not Without Risk
Greenfield projects are exciting to launch, but it would be wise not to rush head-first. Before jumping in, enterprises must consider potential roadblocks to their digital-first strategy. One of these is time and cost issues. Insurers need to explore options first and decide on greenfield projects to pursue. Because these projects take longer to complete and require new systems, firms may need to shell out more funds during the early stages. Enterprises in the risk-averse insurance industry may also need to fortify cybersecurity as operations move to open architectures. Despite this, a prolonged development lifecycle often leads to a better return on investment.
Another thing to consider is skills training. With IT staff more accustomed to older technology, they may need to learn how to handle new infrastructures. This could mean additional costs for training staff or hiring specialists. Starting greenfield initiatives requires stakeholder commitment and a shift in organizational culture.
Of course, the benefits outweigh the risks. Insurers that don’t adapt to the ever-changing technological landscape will be left behind. By being open to new development approaches, players in the competitive insurance market can stay ahead of the curve while giving policyholders the service they deserve.