"Modernisation does not have to involve one large and disruptive project."
- Richard Stewart - Lumera
Insurtech company Lumera has warned that legacy administration systems could make it more difficult for group protection providers to maximise their expertise, as employers look for more flexible and connected workplace benefits.
Lumera argues that, following a period of market consolidation, many of the UK’s larger group protection providers are now running several administration and technology systems across different books of business, often with systems carrying out similar tasks.
"Group protection providers have a huge amount of data and product knowledge, but outdated administration systems can restrict what they are able to do with it," Richard Stewart, commercial director of workplace solutions at Lumera (pictured above), said.
"The problem is often not a lack of ideas or expertise, but whether the technology allows providers to act on them."
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Lumera adds that modern administration platforms can make it easier to change products and processes without lengthy system development: "The direction of travel is moving towards integrated propositions that allow employers to connect with insurers, other workplace providers and benefit platforms to deliver greater value to their employees," Richard Stewart continued.
"Modern technology will be essential to achieving this as well as harnessing the potential of data analytics and AI to capitalise on the strategic, member-level data held by providers.
"Modernisation does not have to involve one large and disruptive project. Providers can move books of business gradually and retire older systems over time, giving them a practical route to a more flexible and connected service."
