Tieto Insurance-in-a-Box (iiB) is a digital startup toolkit designed to enable insurers to fast-track their new product deployments. At Tieto they leverage the power of partnership by building an ecosystem with the best Insurtec solutions in the market. The Insurance-in-a-Box (iiB) platform leverages the latest technology accelerators including Mobility, IoT, ML, AL, Robotics etc. The Life & Pension solution explores the potential of hybrid products that the insurers and wealth management companies can bring to the market with goal-based planning, dynamic pricing and flexible benefits among others.
Insurers are confronted with the challenge of a swarm of tech driven upstarts which are rocking the industry with innovative business models. The challenge therefore is for them to embrace change and take the digital disruption challenge head on.
The challenges ahead:
- Be quick: fast time to market for new products
- Be agile: have differentiated products and pricing
- Customer comes first: it’s about what customers want
- Changing business models: IoT, Data analytics and Big Data, Blockchain etc. have altered how companies do business through new engagements, distribution channels and innovative products
- One solution cannot be good in ‘all’: a single solution vendor can never specialize in the complex sub systems that an insurance ecosystem now needs
- CAPEX to OPEX: with the fast-changing landscape and fund crunch the opportunity cost for ‘owning assets’ is higher than ever
The Insurance-in-a-Box Insurance-In-A-Box promises to:
- Start a greenfield insurance start-up in less than two months
- Kick-start a digital transformation journey with a full-service insurance platform out of a box provisioned as-a-service
- Have access to the best-in-class ecosystem, pre-packaged in modular format
- Leverage latest technology and distribution disruptions to invent new business models
Encouraged by the successful market reaction of the P&C Insurance-In-a-box, they are now geared to launch iiB for Life and Pension. The uniqueness of the Tieto Insurance-in-a-Box approach lies in its revolutionary approach to the digital disruption that is already engulfing the Insurance industry:
- It uses an ecosystem-based approach of plug-and-play components. Each component is the best of its class in its specific domain. Components can be added and/or replaced to keep up with rapid changes in the market. This approach subscribes to the paradigm: No single tool from the InsurTech box has the power to transform the market, but together they do.
- By adopting a modular and scalable approach, start-ups can leverage technology in a flexible way: They can Try fast - Fail fast.
- By using out-of-the-box insurance capabilities, standard industry interfaces and a flexible solution requiring minimum coding, the time to market is crunched drastically.
- As with technology, the flexibility is also built in the pricing models. Insurers can choose from several pricing models: flat rate, usage-based, tiered, user count and component-/ feature-based. Combining models to sync with revenue streams enables insurers to move to a ‘rental model’ and thereby avoid upfront capital investments which can be deployed for more profitable uses.
This is not an empty promise. They have been able to support a customer go live with a digital startup company from scratch in less than 2 months in the P&C space. Furthermore, they are in the process of putting together an Agile Insurance Platform for a Tier 1 insurer in Central Europe and that too will be green-to-go in 2 months.
How it works
The Insurance-in-a-Box [iiB] ecosystem leverages partner solutions to bring to the market a plug-and-play insurance and wealth management platform supporting all business lines. The demo in Munich this year focuses on the launch and enablement of the Life & Pension business and goal-based savings accelerator.
The solution moves from the ownership-driven (CAPEX) approach to a pay-as-you-use-driven (OPEX) model enabling dramatic cost savings. Enabling a holistic insight in a consumer’s insurance and wealth, allows insurers to truly disrupt the status quo and invent new business models. The power of partnership in the ecosystem enables innovation acceleration. This creates possibilities for financial services companies to truly reinvent themselves and their offerings.
Why we selected Tieto Corporation for DIA Munich
We’re very pleased Tieto wants to showcase their iiB at DIA Munich. Tieto sees data as the new water -the prime driver for human experience and economic value in the future and continues to co-innovate new and unforeseen data-driven services and business models, opening up new revenue streams, increase cost savings and creating disruptive business models.
At DIA Munich, Tieto will present the Dynamic Insurance concept that smoothly and seamlessly allows the consumers to leverage life-based events to mitigate risks and create goal-based investments.
Who is Tieto Corporation?
Tieto (knowledge) is the largest IT company in the Nordic region. Founded in 1968 and headquartered in Finland, Tieto has over 13,000 experts in close to 20 countries. Tieto's turnover is approximately EUR 1.5 billion and shares listed on NASDAQ in Helsinki and Stockholm.
The company started its business operations in Espoo under the name Tietotehdas Oy. In the 1990s, the company experienced rapid growth through a number of acquisitions, mergers and strategic alliances. During the 2000s, the globalization of the IT industry accelerated speeding up Tieto’s advancement to international markets.
In 2012, Tieto introduced a new consumption-based Cloud Server, the fastest and most flexible cloud service in the market. It marked Tieto’s new technology strategy concentrating on four key areas: cloud, big data, mobility and social media.
Tieto has been awarded multiple prizes for its responsibility towards the environment and has been one of the IT world’s pioneers with its first energy efficiency project already taking place in 1978.
“ I believe that the iiB platform is the perfect tool for insurers to build new business models and embark on a risk mitigated modernization & transformation journey supported by the latest technology accelerators.” Dr. Sameer Datye, Head of Business Development- Insurance & Wealth Management
Left to right: Anna Pylkkönen (Project Manager), Juho Tikkala (Architect), Anu Avellan (Business Analyst), Risto Laiho (Business Developer), Hanna Viitanen (Architect), Sameer Datye (Business Owner), Sampo Ehrlund (Architect)