In the context of ongoing confusion, insurance companies are called to reinvent themselves. In order to convert at the operational level, insurance companies need to move from complexity to simplicity. This alone is a difficult task. The Composable architecture helps insurers to simplify this complexity at every stage of the insurance value chain, often using processes that are already at their disposal. Below are five practical, configurable architecture usage cases:
1. Policy Management – From complex organizational structures to agile and integrated ecosystems
Many of the services of new insurance coverage applications are unbounded. This allows insurers to ingest applications from digital portals and AI-based product/coverage selection engines. This also helps establish a prequalifying engine based on data from various vendors such as distance to the coast, reporting clues, risk inspection using IoT sensors (such as surveillance systems, smart home appliances, smart meters), and externalized valuation and pricing engines. This helps to distribute development, integration and testing efforts and help new business policy applications at a much faster pace. When you break down processes into multiple subprocesses, users can consume them at various points in the policy transaction timeline, such as when creating financial support or updating.
2. Billing Management – From manuals to automated, personalized invoices
For billing management, you can use the list invoice service breakdown to help you build reusable features such as creating accounts and updating member details. Invoices are generated for multiple policyholder or agent transactions, and EFT payments are completed at a certain frequency. Recovery and refund transactions can be triggered based on audit tasks completed at the end of the policy year. Many of these individual services are also reusable for regular commercial lines audits.
3. Transforming claims through complexity – Converting from flexibility to dynamic claims solutions
There are four high-level modules for claim processing. Initial Loss Notice (FNOL), Handling, Financial and Closures. The FNOL process has microlevel services that are bundled as individual application programming interface (API) services to internal and external systems, and listed as unbundled microcomponents. The Composability business model allows you to rebundle these unbundled components to build dynamic modules.
4. Straight-Through Claims (STP) – From time-intensive review process to automatic Apiel approval
A straight-through processing (STP) claim refers to a large number of low-value claims that can be paid immediately without a detailed arbitrage process. In this case, the next process uses a different API: It starts from the base of the claim intake. Policy search and search. Attach the invoice by pushing the invoice that automatically has the vehicle or invoice number. Check coverage of specific details on your invoice. Check if the amount on the invoice is less than the STP threshold defined by the insurer (for example, $350). Based on the outcome of all these API processes, billing payments will be automatically approved and the amount will be paid immediately to the insured. These can be used for car “glass only” claims and low-cost medical damage.
5. Simplification of the Monolith – From large-scale legacy infrastructure to modular and agile approach
Current conversations with clients recommend simplifying monolith structures for effective implementation of configurable architectures. This refers to the process of gradually dismantling and rebuilding current infrastructure in a more efficient way. Monolith simplification can help minimize risk if your client has an active monolith application that supports your business and is receiving continuous enhancement.
Once we determine that a configurable design is applicable, we approach it in three phases. Understand the challenge, evaluate the actions needed, and implement the solution. Following this initial approach, further component checklists can be created to categorize monolith experiences.
Contact us and discover how to use it to streamline and grow your insurance business Reinventing the entire enterprise.
