Suncorp Launches Three-Year Technology Plan to Propel Future Innovations
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Suncorp Launches Three-Year Technology Plan to Propel Future Innovations
Quick Overview
- Suncorp’s three-year tech vision emphasizes platform upgrades and AI-driven operational changes.
- The firm has successfully completed its banking divestiture to ANZ, streamlining its operations.
- Key initiatives encompass enhancing its policy administration system (PAS) and broadening AI implementation.
- Suncorp intends to establish a “genuine digital insurer” providing quicker market response and superior customer offerings.
- AI implementations are projected to cover customer service to fraud detection, with over 20 initiatives on the horizon.
- Suncorp has transitioned 90% of its tech workloads to the cloud, paving the way for further digital evolution.
A Detailed Examination of Suncorp’s New Tech Strategy
The significance of technology at Suncorp, now exclusively general insurance, has surged with the launch of its three-year tech strategy. This plan sets bold objectives regarding platform upgrades and innovations powered by AI, anticipated to influence the company’s future operations.
Strategic Sales for Simplification
In a pivotal move, Suncorp has recently divested its banking segment to ANZ, effectively streamlining its portfolio. CEO Steve Johnston noted that this transaction signifies the completion of a comprehensive strategy aimed at simplifying operations. As a result, Suncorp has become a more straightforward trans-Tasman general insurer.
Despite simplifying its portfolio, Johnston emphasized that this process was grounded in extensive technological improvements. These advancements not only supported the separation of banking and insurance sectors but also established a foundation for upcoming innovations.
Modernising Platforms: The Next Step
As Suncorp embarks on its three-year plan, modernising its platforms is a central area of focus. The enhancement of the policy administration system (PAS) constitutes the next major initiative in this ongoing journey. Johnston underscored the necessity of transforming PAS, stating, “a modern insurance company cannot rely on technology developed before 80% of its staff were born.”
The PAS enhancement is perceived not just as a technological update but as a comprehensive reconfiguration of Suncorp’s general insurance enterprise. This transformation seeks to diminish complexity, hasten market readiness, and foster more innovative offerings for customers. This initiative is already active in New Zealand with AA Insurance and will soon branch out to AAMI in Australia and other sectors.
Operational Transformation Powered by AI
While platform modernisation is critical, Suncorp’s focus on operational transformation is increasingly directed towards AI utilization. Johnston disclosed that the company has already created over 100 AI use cases, with the most promising ones planned for funding in FY25. Suncorp identifies general insurance as a prime candidate for AI advantages but is proceeding cautiously in its deployment.
Adam Bennett, Suncorp’s Group Executive of Technology and Operations, noted that AI is currently being applied in diverse areas, including pricing, claims, risk modelling, customer service, and automation. The forthcoming three years will see the firm leverage this momentum, introducing additional generative AI use cases intended to revolutionise its operational framework.
Generative AI: Envisioning the Future
Suncorp has been investigating generative AI for over a year, and Bennett asserts that the technology has matured sufficiently to make a substantial impact on large enterprises. The upcoming year will concentrate on lower-risk use cases that enhance insights, productivity, and employee assistance.
Suncorp has outlined an ambitious plan for over 20 generative AI use cases slated for launch within the next year. These include tools that provide a comprehensive view of active claims while suggesting optimal next steps and a customer service tool to assist frontline employees in quickly addressing customer queries.
Looking Back on the Past Three Years
Reflecting on the preceding three-year plan, Suncorp has achieved notable progress in modernising its tech infrastructure. A significant milestone is the transition of 90% of its tech workloads to the public cloud, a critical aim from earlier objectives. Additionally, Suncorp has successfully completed a five-year initiative to unify its legacy data warehouse systems into a cohesive, cloud-based framework.
The company has also accomplished an organization-wide transformation of end-user technology. This included retiring on-premises virtual desktops and implementing next-gen laptop solutions backed by advanced cybersecurity measures. As part of this transformation, Suncorp has deployed a considerable number of Microsoft Surface devices, thereby further empowering its workforce.
Conclusion
Suncorp’s new three-year technology strategy signifies a decisive move toward becoming a fully digital insurer. By prioritising platform modernisation and AI-driven operational changes, the company seeks to streamline its processes, enhance customer experiences, and foster innovation. Following the sale of its banking division to ANZ, Suncorp is poised to concentrate entirely on its general insurance operations. Planned enhancements to its policy administration system and the rollout of generative AI use cases indicate a future where technology will play a vital role in Suncorp’s achievements.
Q: What are the primary focus points of Suncorp’s new technology strategy?
A:
The strategy chiefly concentrates on platform modernisation and AI-empowered operational transformation. This involves upgrading the policy administration system (PAS) and deploying new AI use cases across multiple areas such as claims handling, pricing, and customer service.
Q: How does the sale of Suncorp’s banking segment influence its technology strategy?
A:
Selling off its banking operations to ANZ streamlines Suncorp’s portfolio, enabling the firm to focus on general insurance. The technological advancements that enabled the separation of banking and insurance services also set the groundwork for future innovations.
Q: Why is the upgrade of the policy administration system (PAS) essential?
A:
The PAS enhancement is a vital element of Suncorp’s platform modernisation efforts. It represents more than just a tech update; it aims to fundamentally transform the company to reduce complexity, enhance speed to market, and deliver innovative customer offerings.
Q: How does Suncorp intend to integrate AI into its operations?
A:
Suncorp has developed over 100 AI use cases and is focused on deploying the most effective ones. These AI applications will encompass various functionalities, including claims processing, risk assessment, customer service, and fraud detection, with a cautious approach to ensure efficiency and mitigate risks.
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