ACORD LOMA 2010: Building Insurance Companies in the Clouds
By Lynne Sampson-Oracle on Jun 07, 2010
Chuck Johnston, vice president of global strategy and alliances for Oracle Insurance, participated in a featured speaking session at ACORD LOMA 2010. He provides an update on his discussions with insurers at the show and after his presentation.
Every year I always make a point of walking the show floor at the ACORD LOMA technology conference to visit with colleagues and competitors, and try to get a feel for which way the industry will move over the next 12 months. Insurers are looking for substance in cloud (computing), trying to mix business with pleasure (monetizing social networks), and expect differentiation through commodity (Software as a Service). The disconnect at this show is that most vendors are still struggling with creating a clear path from Facebook to customer intimacy, SaaS to core cost savings and clouds to ubiquitous presence.
Vendors need to find new ways to help insurers find the real value in these potentially disruptive technologies by understanding the changes coming to the insurance business and how these new technologies impact the new insurance business. Oracle's approach to understanding the evolving insurance industry comes from a discussion with our customers in our Insurance CIO Council, where one of our customers suggested we buy an insurance company to really understand our customers. We have decided to do the next best thing and build our own model of an insurance company, Alamere Insurance, that uses the latest technologies to transform its own business. Alamere will never issue an actual policy, but it does give us a framework to consider the impacts of changes in the insurance landscape and how Oracle technology meets the challenge or needs to evolve to help our customers be successful.
In preparing for my talk at the conference using Alamere as my organizing theme, I found myself reading actuarial memoranda on CSO table changes and articles on underwriting theory that really made me think about my customer's problems first and foremost, and then how Oracle technology can provide answers. As much as I prefer techno-thrillers and sci-fi novels to actuarial papers for plane reading, I got very excited about the idea of putting myself back in the customer shoes I haven't worn in a decade, and really looking at how Oracle can power the Adaptive Insurance Enterprise.
Talking to customers and industry people after the session, the idea of Alamere seemed to excite people and I got a lot of suggestions as to what lines of business we should model and where we should focus first on technology uptake. One customer said to a colleague that Oracle's attempt to "share their pain" was unique among vendors.
More about Alamere, and the Adaptive Insurance Enterprise next time.
Chuck Johnston is vice president of global strategy and alliances for Oracle Insurance.