Geico is best known in the U.S for its direct marketing and tailored property insurance policies. However, increasing competition from online platforms such as Goji and Metromile are pushing Geico and others to embrace a faster release cycle for new products and services. In light of this, Geico is partnering with systems provider Duck Creek to transition all personal lines to a modern, configurable policy management and billing platform called the umbrella line.
Early results have been encouraging as the umbrella line was fully developed and deployed across all 50 US states in just over 12 months (a significantly improvement on the 3 to 4 years-long implementation cycle that previously reigned) and GEICO has been successful in selling more policies during the first month of production on the new platform than the prior 12 months through the old policy management system. Following “impressive” growth of its umbrella product on its new Duck Creek, GEICO will now transition all its personal auto and motorcycle lines before 2017 is out.
Through this partnership GEICO is securing the following objectives:
- Ensured speed to market for new digital projects that will enable Geico to compete with smaller nimbler startups
- Exceptional end-to-end customer and policyholder experiences
- Consolidation of products to a single platform.
Geico’s VP of IT, Steve Smith, has encapsulated the value of this new partnership for Geico: “Customer satisfaction continues to be a key driver of our business and Duck Creek’s industry expertise and advanced technology will help us deliver the exceptional service our customers expect. Every company knows that the future will continue to present more technology challenges and opportunities. Through this recent modernisation, we’re better prepared to take advantage of the latest innovations and compete with digital disrupters.”
Ultimately, the speed with which insurtech startups are launching, raising and scaling is increasing pressure on established players to embrace both new businesses models and I.T infrastructures. GEICO, which already offers great mobile and web experience, clearly recognises this and is now focusing on root and branch reform rather than just launching frontend efforts aimed at online distribution.