Business-Driven Insurance IT Transformation: Comparative Insights from Guidewire Deployments

Authors

  • Lavanya Rajamani

Keywords:

transformations, findings, sponsorship

Abstract

This study examines how leading insurers achieve business-driven IT transformation through Guidewire core system deployments. Synthesizing case data from global Guidewire implementations across various lines, the research identifies key success factors and pitfalls that shape outcomes. Using a comparative case-study approach, performance metrics are analysed before and after Guidewire adoption, with contrast outcomes in different regions and deployment models. Results indicate that when business and IT strategies are closely aligned, Guidewire projects deliver significant improvements (e.g. 30–50% faster claims processing, accelerated product launches, and higher customer satisfaction). For example, one North American auto insurer consolidated legacy systems and cut claim cycle time by ~30% (ROI in two years). By contrast, projects with weak business sponsorship saw cost overruns or under-adoption. It is observed that cloud-based implementations often yield faster time-to-value and agility, though not without challenges (data migration, change management). These findings underscore that strategic planning, stakeholder engagement, and agile governance are critical for realizing business benefits. Ultimately comparative lessons from global Guidewire use can guide insurers in structuring successful, business-driven transformations.

Downloads

Download data is not yet available.

References

David-West, O., Iheanachor, N., & Kelikume, I. (2018). A resource-based view of digital financial services (DFS): An exploratory study of Nigerian providers. Journal of Business Research, 88, 513-526. https://doi.org/10.1016/j.jbusres.2018.01.034

Eckert, C., & Osterrieder, K. (2020). How digitalization affects insurance companies: Overview and use cases of digital technologies. Zeitschrift für die gesamte Versicherungswissenschaft, 109(5), 333-360. https://doi.org/10.1007/s12297-020-00475-9

Eckert, C., Eckert, J., & Zitzmann, A. (2021). The status quo of digital transformation in insurance sales: An empirical analysis of the German insurance industry. Zeitschrift für die gesamte Versicherungswissenschaft, 110(2-3), 133–155. https://doi.org/10.1007/s12297-021-00507-y

Elgargouh, Y., Chbihi Louhdi, M. R., Zemmouri, E. M., & Behja, H. (2024). Knowledge management for improved digital transformation in insurance companies: Systematic review and perspectives. Informatics, 11(3), Article 60. https://doi.org/10.3390/informatics11030060

Eling, M., Nuessle, D., & Staubli, J. (2022). The impact of artificial intelligence along the insurance value chain and on the insurability of risks. The Geneva Papers on Risk and Insurance - Issues and Practice, 47(2), 205-241. https://doi.org/10.1057/s41288-020-00201-7

Hu, Y., Che, D., Wu, F., & Chang, X. (2023). Corporate maturity mismatch and enterprise digital transformation: Evidence from China. Finance Research Letters, 53, Article 103677. https://doi.org/10.1016/j.frl.2023.103677

Iheanachor, N., & Umukoro, I. (2022). Partnerships in digital financial services: An exploratory study of providers in an emerging market. Journal of Business Research, 152, 425-435. https://doi.org/10.1016/j.jbusres.2022.08.010

Krefting, J., Sen, P., David-Rus, D., Güldener, U., Hawe, J. S., Cassese, S., & Xhepa, E. (2023). Use of big data from health insurance for assessment of cardiovascular outcomes: A structured review. Frontiers in Artificial Intelligence, 6, Article 1155404. https://doi.org/10.3389/frai.2023.1155404

Lee, C.-C., Lou, R., & Wang, F. (2023). Digital financial inclusion and poverty alleviation: Evidence from the sustainable development of China. Economic Analysis and Policy, 77, 418-434. https://doi.org/10.1016/j.eap.2022.12.004

Liu, G., & Wang, S. (2023). Digital transformation and trade credit provision: Evidence from China. Research in International Business and Finance, 64, Article 101805. https://doi.org/10.1016/j.ribaf.2022.101805

Liu, M., Yang, H., & Zheng, S. (2024). Index construction and application of digital transformation in the insurance industry: Evidence from China. PLOS One, 19(1), Article e0296893. https://doi.org/10.1371/journal.pone.0296893

Merello, P., Barberá, A., & De la Poza, E. (2022). Is the sustainability profile of FinTech companies a key driver of their value? Technological Forecasting and Social Change, 174, Article 121290. https://doi.org/10.1016/j.techfore.2021.121290

Trinh, G., Nguyen, N., & Singh, S. (2024). Redefining insurance through technology: Achievements and future challenges in the insurtech era. Research in International Business and Finance, 70, Article 102316. https://doi.org/10.1016/j.ribaf.2024.102316

Van Veldhoven, Z., Alaswad, A., Barrett, S., Robinson, M. R., & Vanthienen, J. (2021). Digital transformation in the property and casualty insurance industry. International Journal of Trade, Economics and Finance, 12(5), 138-143. https://doi.org/10.18178/ijtef.2021.12.5.708

Xu, X. (2017). Blockchain and insurance innovation: Mechanisms, prospects and challenges. Insurance Studies, 5, 43-52. https://doi.org/10.13497/j.cnki.is.2017.05.004

Zarifis, A., Holland, C. P., & Milne, A. (2019). Evaluating the impact of AI on insurance: The four emerging AI- and data-driven business models. Emerald Open Research, 1, Article 15. https://doi.org/10.35241/emeraldopenres.13549.1

Downloads

Published

29.08.2024

How to Cite

Lavanya Rajamani. (2024). Business-Driven Insurance IT Transformation: Comparative Insights from Guidewire Deployments. International Journal of Intelligent Systems and Applications in Engineering, 12(3), 4515 –. Retrieved from https://ijisae.org/index.php/IJISAE/article/view/7897

Issue

Vol. 12 No. 3 (2024)

Section

Research Article

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

All papers should be submitted electronically. All submitted manuscripts must be original work that is not under submission at another journal or under consideration for publication in another form, such as a monograph or chapter of a book. Authors of submitted papers are obligated not to submit their paper for publication elsewhere until an editorial decision is rendered on their submission. Further, authors of accepted papers are prohibited from publishing the results in other publications that appear before the paper is published in the Journal unless they receive approval for doing so from the Editor-In-Chief.

IJISAE open access articles are licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. This license lets the audience to give appropriate credit, provide a link to the license, and indicate if changes were made and if they remix, transform, or build upon the material, they must distribute contributions under the same license as the original.