IAG is preparing for its previously mooted consolidation of its core policy and claims platforms that will see the insurer migrate from 32 to systems to two.
“IAG’s technology operating platforms are overly complex and expensive,” IAG chief operating officer Mark Milliner told a strategy update today.
Parts of IAG are already relying on GuideWire ClaimCenter for claims management, and the company is planning to roll the system out across Australia and New Zealand.
“We have some big opportunities,” Milliner said. “This will provide a simplified claims business and technology architecture across all IAG brands in Australia and New Zealand. It will be done in incremental steps to minimise risk whilst we transform how our people work. The focus is now on completing the implementation of claims across all brands to one system by June 2018.”
“We will begin planning the migration of our policy systems next year,” the COO added.
The systems consolidation program is part of a broader optimisation process at the insurer that is intended to cut its annual operating expenses by $250 million.
IAG chief customer officer Julie Batch said that the company was also preparing to reap the benefits of a program to simplify its data landscape.
“We commended our data journey two years ago and today all of our organisation’s current and historical data now exists in a single data lake,” the IAG executive said. IAG has more than 144 sources of data covering its customers, suppliers and employees.
“All of these data sources are now being streamed continuously into our data lake and we are able to see the majority of our customer actions in real time,” Batch said.
“The work we’ve done on our data means we also now have a single view of customer and we’re taking steps today to connect that single view to our frontline staff so they can work more proactively with our customers today.”
In addition to customers, the data lake offers visibility “of almost every Australian,” she said.
Batch today also announced the launch in January next year of a $75 million IAG Ventures fund.
The VC fund will have a global mandate and invest in “new business that focus on customer understanding, value-chain disruptors and new pathways to market”.
“The fund’s focus is obviously economic, but it’s mainly around bringing the outside world into our organisation. It’s about connecting new thinking and capabilities to our innovation pipeline.”
Batch revealed that IAG had moved its digital teams into its Customer Labs division. “These digital teams will help us activate and execute the customer journey,” she said. “They’re going to help us build customer engagement platforms and digital experiences that bring our customer promise alive.”
In December 2015 IAG restructured and created Customer Labs and Digital Labs divisions, with the latter led by the organisation’s then-CIO Claire Rawlins. IAG announced in October that Rawlins had left the business.