When most people hear the word “insurance,” they think of life insurance, which is similar to medical insurance, and automobile insurance, which is similar to non-life insurance. Insurance products can be categorized into those that cover major risks such as pandemics, conflicts, and cyber-attacks, and those that cover everyday risks such as concert and travel cancellations, and human and pet health. Where there is risk, there is insurance. This time, I will introduce the relationship between “insurance” and DXC.
Insurance products change according to social conditions and trends
There is a theory that the origin of “insurance” dates back to the 17th century when clergymen formed a union in England and each contributed living funds to bereaved families in case of emergency. it seems that the roots of tanomoshi-ko, which aims to help one another with mutual aid, have already appeared in documents from the Kamakura period. It is also widely accepted that Fukuzawa Yukichi brought modern insurance to Japan. not changed much since ancient times.
Japan’s financial industry, including the insurance industry, has long been protected by the “convoy system*,” which has hindered free competition. However, due to the drastic reform of the Insurance Business Law in 1996 and the financial Big Bang, fierce competition among companies began in the financial industry as well. As a result, many foreign insurance companies have entered the Japanese market, and this trend has become a big opportunity for DXC’s business in the insurance industry.*Governmental considerations to prevent the creation of companies lacking in management and competitiveness in a certain industry.
Insurance product trends have changed over time. During the bubble period, products for asset management such as variable insurance and single premium endowment insurance became popular. In recent years, many products have been provided to prepare for the new coronavirus and cyber attacks. The insurance industry can be said to be a sensitive industry in any era.
In Japan around 1980, the household penetration rate of life insurance had already exceeded 90%. After that, the biggest challenge in the insurance industry was how to develop attractive products. In addition, the balance between the social significance of insurance (parts that do not change) and IT investment in insurance product trends (parts that change) has become a source of concern for insurance companies. In the next section, I will explain how DXC has supported the insurance industry.
Providing unique IT solutions for the insurance industry in the global market
DXC has been actively providing policy management systems by leveraging its capabilities accumulated through over 40 years of business for the insurance industry. We have realized the introduction of a contract management system with sophisticated functions at a reasonable cost, and we have a track record of supporting many foreign insurance companies entering the Japanese market in the 2000s. DXC’s policy management system is continuously used by many domestic insurance companies, including life insurance companies, non-life insurance companies, and reinsurance companies. 12 companies) (as of June 2023).
The policy management system is used to maintain and manage insurance contracts as a master of all contract information and is the most important core system for insurance companies. insurance policy lifecycle, supporting the “unchangeable part” of the insurance industry mentioned above.
In addition, DXC also offers a special calculation system called “Insurance Mathematics”. As for insurance mathematics, it may be easy to imagine it as “a system that operates when you enter your age, gender, etc. on a web page and estimate insurance premiums”. Since all insurance products are based on calculation formulas, it can be said that this also supports the “unchanging part” of the insurance industry. DXC contributes to improving the stability and reliability of insurance companies’ business by providing comprehensive support for the “unchangeable parts”, from the creation of insurance products to insurance contracts.
On the other hand, the “changing part” is supported by systems such as product management, customer engagement management, and marketing automation (MA). DXC has also provided these systems for many years.
One of DXC’s strengths is that we can provide one-stop support for both sides while promoting investment in “changing parts” by providing “unchanging parts” at a reasonable cost, which is highly appreciated by our customers. Another feature of DXC’s solution is that it enhances mobility by completely separating the “changeable part” from the “u
