Rudi Oskamp, Jakob Andersen and Michiel Krol
30 November 2014
This article first appeared in Pensioenadvies
PA financial experts Rudi Oskamp, Jakob Andersen and Michiel Krol have had a byline article published in Dutch pension industry magazine PensioenAdvies.
They discuss the impact of the changes in the market for pension funds and insurance companies, and how they are due to shifts in demographics and an increase in compliance regulations. The article outlines how this changing environment makes it more difficult for these companies to plan their activities.
In order for companies to be successful in the future, the authors say organisations need to be able to adapt to changes in regulations and market dynamics by making alterations to their company model and creating innovative products.
To achieve this, companies need:
A flexible company architecture
A flexible architecture will help businesses to improve their adaptability to facilitate development of new products and changes to regulations. This is especially true in the pension and insurance industry, as most IT systems have been developed for a stable environment in the 1980s and 1990s. This means they are not suitable for the current backdrop where end-to-end processes need to be supported.
Accelerated product development
Generally, new product development is time consuming and costly in the financial sector. Companies need to reshape their process for product delivery, and product development needs to be addressed in the vision of company architecture.
Product innovation in the insurance and pension sector mainly consists of incremental improvement of existing products, but companies need a more innovative culture to make room for new ideas and allow for failures.
To be on top of the competitive landscape
Changes in the market attract innovative companies outside the traditional industry that can enter the market without legacy issues. Pension funds and insurance companies need to look at the market and their products with the perspective of customer interaction and customer experience.
Companies that face these challenges with an integral architecture, with IT as an `enabler´ of change, will be successful and ready for the future.
Rudi Oskamp, Jakob Andersen and Michiel Krol are financial services experts at PA Consulting Group
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