In this blog I will give my views on the Swedish occupational pension, what are the drivers for core system changes and what Profit Software is offering to the Swedish life insurance companies.
Swedish occupational pension
Swedish occupational pension was introduced to the labor market as a safe complement to the national pension (folkpensionen) back in 1913. The occupational pension’s importance for the total pension have increased over time and will be even more important in the future. Occupational pension is also getting more relevant for the younger audience due to the last years news and discussions about the pressure on the pension system and the need to start saving for your own pension early on in your career.
Drivers for core system changes
Insurance companies are facing pressure to be fast and agile in order to deliver modern and digitalized customer services. When adding new customer services, which in itself can be quite small projects, it might lead to long and complex, and in many cases, very expensive IT projects that in the end is impossible to do. The reason for this is in many cases caused by the old and outdated IT systems. The IT systems were built for decades ago and are lacking API’s (application programming interface) and real-time transactions for modern online services. Another challenge is the constant demand from regulators and authorities that eats up a large portion of the IT budgets. Then, there’s internal demands on improved efficiency and lower cost of operations.
When it comes to new technologies the insurance companies need to look at an arsenal of technologies as; blockchain, AI, machine learning, Big Data analytics, robo-advisors and IoT. These technologies are drivers for extended user experiences and services. Customers are getting more tech savvy and they are demanding an increasing level of tailored services and fast answers to their questions.
The digitalization agenda with the increased demands for new services and fast go from market launch of new insurance products are already today heavy and will most likely increase further in the future. In order to satisfy the current demands and to be prepared for the future, the insurance companies need to clean up their IT stack and renew their core systems. If not, it will be a never-ending story with IT patchwork and a spaghetti IT architecture that just make it even more challenging to handle with increasing operational expenses as time goes on.
Profit Software’s offering to the Swedish life insurance companies
Profit Life & Pension is a life and pension insurance solution for the Swedish occupational pension market. PLP includes support for key business processes including insurance product management, sales, digital services, claims and claims management. The solution includes services, tools and mandatory system integrations to effectively run an insurance business that meets the regulatory requirements.
Profit Software’s advanced solutions are the result of faithful and sustainable work in the financial industry since 1992. We understand our customers’ needs and adapt our solutions to build world-class IT-systems. We continuously renew and develop our working methods and our product range.
Read more about our Swedish occupational pension offering.
Profit Software provides system solutions and consulting services to the financial industry. It also offers analytics and information management services across multiple industries. Founded in 1992, Profit Software has offices in Espoo, Tampere, Pori, Lahti, Tallinn and Stockholm. The number of employees is 250+.