In the not-so-distant past, protection insurance could afford to be a fairly sleepy industry. Important things were happening, but group protection policies and the operations behind them could do business as usual, largely escaping public thought or discussion.
But that’s been changing quite a bit recently:
End consumers are more aware than ever of financial security. Employers want to offer competitive benefits packages to keep top talent. Regulation organisations are imposing more customer-friendly requirements on insurers that they must adhere to.
At the end of the day, this all ties back to a need for better operations: whether it’s to get new products to market faster, or nimbly comply with new customer communication regulations.
This is where the four components of MACH-based architecture come in to help protection insurers gain and keep a competitive edge:
An architecture with microservices decouples an overall application into loosely-coupled services that can be developed, deployed, and scaled independently. This makes digital transformation projects and long-term maintenance much easier to handle.
Without microservices, you’re essentially putting all your eggs in one large, clunky, monolithic basket. If that basket gets a hole in it, all your eggs fall out. In tech terms, if you encounter one issue on any part of your monolithic (microservices-less) architecture, it’ll affect the entire system.
But with microservices, you get stronger resilience and fault tolerance. The system as a whole can better handle unexpected errors and disruptions, and if one microservice fails, it won’t affect the overall system.
Having microservices as part of your architecture also means that if you want to start a digital transformation, you can upgrade one piece at a time without detracting from ongoing operations.
In today’s protection world, user experience is paramount. If you’re not giving brokers, employers, and customers an easy user experience, they’re apt to shop around for other carriers that’ll do a better job.
APIs are the catalysts that take you from being a standalone insurer to becoming the ecosystem that all your users love.
Considering their important role, APIs need to be at the core of your architecture, with a standardised and consistent way for the connected technologies to communicate with each other.
Having an API-first approach to architecture is crucial to fostering innovation and growth. Without it, you’ll have a hard time integrating new services and applications into your growing ecosystem. You also won’t get the interoperability needed with third-party vendors, insurtechs, or other industry players that help you provide holistic, to-die-for customer experiences.
While digital transformation can be costly, switching to a cloud-native platform is one place where the total cost of ownership starts to make sense.
Because of the cloud’s pay-as-you-go pricing model, carriers can save money on bandwidth during slower seasons, and use the bandwidth they need during busier seasons without slowing down operations. Cloud nativity solves the catch-22 of not wanting to pay for unneeded server space, but having it available during times of need. It gives you the best of both worlds.
Cloud-native features don’t end there. It also lets insurers develop and deploy applications without the need to manage servers, reducing complexity and maintenance overhead while optimising workflows and streamlining operations.
Without getting too far into the technological weeds, the “headless” principle enables the separation of the front-end user interface from back-end applications.
Insurers who choose a headless approach can create more flexible and customised end-user experiences, whether for individual payers, HR departments, brokers, or customer service. By separating the front-end interfaces from the back-end applications, data can flow more freely, and more customisations and personalised offers can happen in real time.
However, having headless options built into a platform’s architecture doesn’t mean an insurer must utilise the headless setup. If you prefer, you’re still 100% able to manage the back-end and the front-end applications as a single system to avoid replicating any changes. Ambitious insurers need the power to choose a back-to-front setup that works best for their operations, and having this flexibility built into your coretech ensures you have the functionality you need.
With better architecture at your core, you don’t just have to adapt to market changes — you can lead the way.
MACH-based architecture catapults your protection insurance business into much higher efficiency and customer satisfaction. With its innovative blend of microservices, API-first design, cloud-native solutions, and headless capabilities, MACH is the key to staying ahead and future-proofing yourself.
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The post Why MACH’s 4 Components Win in Protection Insurance appeared first on EIS.
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