Keylane Unlocked: Insights Series 2024 with Rob van Esch

Author: Rob van Esch – VP Strategy & Innovation at Keylane

We caught up with Keylane expert Rob van Esch, VP Strategy & Innovation, to get his inside opinion on the major challenges and opportunities facing the insurance industry in 2024.

For the full and unedited interview, watch Rob’s interview here.

 

The year that AI enters core insurance processes

“2024 will be a very exciting year for the insurance industry. There are a lot of opportunities and possibilities for further innovation, such as by incorporating AI into core insurance processes, which will allow for more cost-effective operations. Furthermore, we’ll see new insurance propositions in the market, driven by, for example, increasing and ever more sophisticated cyber security risks, as well as the escalating challenges faced by climate change.”

Security and compliance challenges for legacy-bound insurers

“Government regulations such as Solvency & IFRS 17, plus DORA and regional legislations like BaFin/VAIT in Germany require firm and well documented actions be taken, and we’re seeing insurers doubling down on staff allocation for compliancy work. Adding to this, security threats absolutely cannot be taken lightly in 2024. Worryingly though, many existing applications have become extremely vulnerable as their core systems are end-of-life.”

The impact of technical debt on insurance organisations in 2024

“Many insurance organisations are still dealing with technical debt relating to legacy systems that are resource intensive and eat up IT budgets – both in terms of keeping the lights on, and supporting the business with new innovations. It’s common knowledge that an outdated technology stack makes it very difficult and costly to innovate. The reality in 2024 is that many insurance core systems are on life-support. Of course, we understand that companies are hesitant to invest in technologies that will require integrations to their legacy master data, but it’s not an issue that insurers can afford to ignore any longer. We have even seen recent core system implementations that fail to satisfy insurers’ needs and expectations. These legacy systems are limiting the innovation capacity of insurance companies. Compounding the issue further, it’s very difficult to open-up these siloed systems to modern integrations, which is essential for making use of the latest technologies.

The good news is we’re seeing a ramp up in 2024 in terms of projected IT investments to address technological debt, which will help insurers meet their requirements for years to come. In 2023, we observed a steep increase in planning activities, and Keylane, along with our trusted partners, engaged with many of the largest insurers in the market to discuss requirements, timelines and desired outcomes. Going forward, I expect many of those plans to be realised in 2024. Like it or not, as an industry we are beyond the tipping point now, and measures must be taken – if not from an innovation stand-point, then from a business continuity perspective.”

The right approach to legacy replacement in 2024

“Every insurance organisation is different, so when gathering business requirements for a new core system, an insurance providers’ IT decision makers should always get involved as early as possible to ensure detailed planning and to share their perspectives on the best ways to future-proof their organisation’s investments. At Keylane, we get involved in as many of these discussions as we can, and as early as possible, to offer our advise and to make sure expectations are met and exceeded.

If you’re an IT decision maker, my advice to you is to take a forward-looking position and force a future perspective into IT related discussions. Why? Because a new system must be versatile and ready to accommodate change. For example, to what degree can business users change essential assets like product and process definitions themselves without introducing complexity? And how easily can you extend the core system with new customer centric solutions, such as by using headless architectures? What about integration with third-party providers for efficient operations? These questions, and many others, must be considered in 2024.”

Understand the best cloud solution for your insurance organisation

“Keylane delivers its core system Axon in the cloud, with fully hosted services attached. For cost reasons, most of our clients opt for this approach. However, we have clients that prefer to take on the hosting themselves. Ultimately, this is a decision for the client to make. Keylane can facilitate both options, as well as a hybrid set up. Which approach is right for you depends on many factors, so consider carefully what your needs are before opting for one solution over another. “

Carefully consider your platform partners before committing

“My final bit of advice is perhaps the most obvious – carefully consider which partner is best for you. In my experience, data migration is frequently underestimated. More often than not during migrations/implementations, millions of policies are migrated from one system to another, and failure is simply not an option. An experienced partner will ensure there are no business disruptions or business continuity problems, so always look at their track record for successful migrations and act accordingly.

Finally, I wish all in the insurance industry success for 2024!”

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Keylane’s Axon Platform

With Axon, Keylane fosters trust and empowers lasting partnerships by providing an all-in-one unified core insurance platform that ensures a 24/7 uptime for its clients. Keylane provides and implements continuous upgrades to Axon, guaranteeing that its customers are able to comply with the latest rules and regulations.

A Partnership with Keylane
With a proven track record in successful implementations, our dedicated experts, supported by capable partners, work to deliver an ecosystem of emerging technologies that enables Keylane’s clients to deliver innovative services and products while driving profit, customer growth and true market innovation.

Headquartered in Utrecht in the Netherlands, Keylane employs around 700 people and delivers services to over 225 insurance companies across the Netherlands, Belgium, Germany, Denmark, Norway and Switzerland.