Insurance companies are rapidly embracing insurtech solutions to attract new customers, improve efficiency and enhance customer experience. However, like many organizations undergoing digital transformation, they often face the challenge of funding new initiatives without redirecting resources from other business areas. Implementing new technology solutions while facing pressure to reduce policyholders’ costs is an ongoing challenge for all insurance providers.
Maintaining performance amid rising operational costs
A national insurance company was tasked with finding ways to reduce operational costs without affecting its workforce and performance. Upon further discovery, the company’s IT and procurement teams reviewed OEM maintenance contracts to better understand increased costs for post-warranty hardware.
OEM maintenance costs associated with the company’s IBM mainframe and Dell EMC storage systems were clear targets for cost reduction. The insurance company had relied on OEM support for decades. To control costs, the IT team determined it was time to gain buy-in to explore third-party maintenance (TPM) as an alternative.
Strategic solutions enable fund reallocation and OpEx savings
After conducting thorough technical evaluations of leading global maintenance providers, Service Express ranked number one. The combination of in-house engineering expertise, multivendor capabilities and a long-standing track record of IBM mainframe support delivered the confidence needed for the insurer to transition support to Service Express.
The company transitioned from OEM post-warranty maintenance to TPM, successfully achieving its primary objective of reducing costs. In addition, the insurance provider utilized Service Express’ ExpressConnect® Monitoring platform, which streamlined maintenance, automated support and increased productivity.
The partnership with Service Express helped the insurer reallocate $250,000 in OpEx to other insurtech initiatives. The business achieved 75% savings on its contracted services by utilizing a TPM provider instead of OEM support without compromising performance.
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