Megalodon Insurance Systems is excited to attend the upcoming CICA 2017 International Conference in San Diego, and not just because we’ll be able to escape (at least for a few days) another cold Midwest winter:
For those unfamiliar with the acronym (you can be forgiven considering there are more than five million acronyms/abbreviations), CICA is the Captive Insurance Companies Association. Formed in 1972, CICA
supports the development of captive insurance companies around the world (it is domicile-neutral) and offers alternative risk professionals the latest, most up-to-date viewpoints on captive insurance and risk retention groups. The theme of this year’s conference, “Defying Disruption,” provides insight into the types and pace of changes affecting not just captive/insurance management, but society as a whole. Topics to be covered in one breakout session include:
- How will “less talk more text” add to cyber risk security issues (social media, purchasing, medical diagnosis, privacy)?
- What new risks will your captive need to address with the advent of driverless cars, drone delivery and “new wave” medical malpractice? (Gratuitous digression: I don’t know what “new wave” med mal is, but if it’s anywhere near as cool and fun as New Wave music was, watch out.)
- What impact will this new delivery paradigm have on insurance costs?
The insurance industry, like countless others, is undergoing massive changes thanks to the advent of disruptive technologies and their resulting innovations. Just a few examples include:
- Fitbits and similar wearable technologies can help health insurers create risk profiles of more/less active individuals, while Progressive Insurance’s “Snapshot” (or Ford’s partnership with State Farm) allows real-time sharing of driving data to create pay-as-you-go policies.
- Big Data. With data nearly everywhere on policyholders (the aforementioned wearable and driving technologies can be combined with Facebook profiles to analyze people’s actions), understanding and maximizing predictive analytics will be a competitive advantage.
- Driverless automobiles. While the self-driving cars of 2054 as depicted in the film “Minority Report” appear to be ever closer to reality, difficult questions such as who or what entity shall be held liable in the event of an accident (the car’s owner, manufacturer; the software company that installed the self-driving technology, etc.) must be answered.
On a less grand (but nonetheless important) scale, disruptive innovation is coming to the captive management industry in terms of how companies manage their clients’ businesses, regardless if they’re fairly complex risk retention groups or somewhat simple 831(b)s. Since launching our policy, claims and billing administration SaaS last summer, we at Megalodon have had conversations with dozens of captive management professionals and have been surprised at how many still run their day-to-day operations using the (by now) traditional suite of Microsoft Office tools, mainly Word, Excel and Outlook. (Not that there’s anything wrong with Microsoft. In fact, the Megalodon Insurance Management SystemTM is built on Microsoft’s .NET framework.)
The one word we hear most often is that this process is very inefficient: renewing policies, particularly within an RRG, is a laborious exercise of seemingly endless copying and pasting; extracting data needed for regulatory reporting means combing through dozens of Excel spreadsheets; and then documenting communications with clients means manually saving emails into separate Outlook sub-folders. For many captive management companies, this is a process that’s been around for 20+ years. They’ve priced various policy and claims administration systems, however have been turned off by prohibitively expensive initial licensing and ongoing annual maintenance fees.
Like a shark swimming in the waters off Amity Island would disrupt many a summer vacation, Megalodon’s intuitive, 2-click platform seeks to disrupt the conventional wisdom that an insurance administration system has to be really, really, really, ridiculously expensive. With licensing options starting in the low-to-mid five-figures (depending on captive size and complexity of operations), Megalodon can provide the level of customized solutions, change management consulting and data migration that strikes the appropriate balance between need and budget.
Should you be in San Diego next week, then we hope you’ll stop by CICA 2017 booth #13 to see the latest in powerful, affordable policy and claims technology designed with captive managers in mind.
– Jim Reuter, VP Business Development, is passionate about improving insurance operations using forward-thinking software and systems. He also has near-encyclopedic knowledge of pop culture. To talk to Jim directly, please call (608) 709-2154 or drop him an email at email@example.com.