Increased digitization in the insurance industry is driving a need for robust digital platforms. SAP, CSC, and Oracle are the main competitors in this space. Thanks to their broad portfolios of insurance specific products, they’re known as megavendors. Recently, Gartner released a report evaluating the capabilities of these three megavendors. The report positions SAP as the leader in four of the five digital platform categories.
Insurers’ Evolving Business Needs Drive Digitization
A growing number of insurers are undergoing digitization. There are two reasons for this. First, they want to offer consumers a better user experience. A 2016 study shows that many small business owners prefer digital insurance options. Mobility, online portals, and user friendly interfaces are critical to attracting these customers. Second, digitization supports business growth. Insurers want scalable digital platforms with solutions to manage internal business processes. They also want to integrate their digital ecosystems with external systems and application interfaces. And they need seamless data exchange across their systems.
SAP Leads in Four Key Categories of Digital Platforms
The megavendors are focusing on digital platforms to better meet insurers’ evolving needs. Gartner’s report shows how SAP is outperforming its competitors in the following four categories:
- Core components: All three megavendors are shifting their focus away from core insurance packages. They’re developing core components suitable for leveraging via digital platforms. Yet core systems remain the mainstay of CSC’s offerings. Oracle has just started integrating its solutions to improve their functionality for insurance. In contrast, SAP delivers a holistic solution. It leverages powerful corporate assets from outside the insurance sector. These assets include the IoT, multichannel support, and analytics. Insurers can install them alone or in combination on their digital platforms.
- The Cloud: Cloud-based infrastructures and applications are critical for businesses that want to grow. The megavendors are migrating their portfolios to the cloud and creating industry specific apps. Using its SAP Cloud Platform, SAP is creating an end-to-end, insurance-specific cloud environment. It’s also integrating its Omnichannel solution SAP Hybris and its analytics portal SAP BusinessObjects. This facilitates the development of solutions to sector-specific challenges like detecting fraud. An example is the SAP Digital Boardroom for Insurance. This is an application geared to upper management and leadership. It provides C-suite executives with comprehensive, real-time data and analysis.
- Customer experience: Effective outward facing solutions are critical to insurers’ ability to attract customers. Insurance specific technology is key to delivering solutions that provide good customer experiences. SAP works with Sapphire Ventures to explore technological innovations that add value for insurers. It is also the only megavendor currently investing in insurtechs.
- IoT support: Support for IoT platforms, products, and analysis is crucial for insurers. CSC and Oracle are both still in the beginning stages of building their IoT capabilities. In contrast, SAP’s IoT strategy utilizes cross industry partnerships and technology models. In recent years, this strategy has enabled SAP to drive innovation in IoT support. Noteworthy areas include telematics, connected health, and connected car technology.
Finally, the report commended SAP’s general strategy. It highlighted that SAP is the only megavendor with a strong insurtech investment strategy. It also emphasized SAPs mature IoT approach in comparison to its competitors.
SAP welcomes the results of the Gartner report. It will continue developing quality digital platform solutions that allow its customers to succeed.
For more information regarding SAP’s Insurance Suite, please visit SAP for Insurance.