Product Description

The Life Insurance Business Capabilities Model is an integrated and in-depth matrix of business capabilities that captures what a Life Insurance Carrier does. It will help companies gain a holistic perspective of their business at a foundational level and provide a business blueprint for many valuable purposes. The Life Insurance capabilities map comprises about 700 capabilities across three levels and is customizable to the unique needs of a life carrier.

(Note: As the Life Insurance capabilities model is a digital deliverable, we do not accept returns or issue refunds. So, please read the product description and the terms carefully before purchasing.)

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The life insurance business capabilities model is a set of multilevel and granular business capabilities with a primary focus on the core industry-specific value chain but also provides a decomposition of the horizontal shared services.

The life insurance business capabilities model is a must-have tool for business architects, enterprise architects, business and technology leaders, and project teams to fathom the nuances of the industry’s core, context, and commodity capabilities.

Life Insurance Industry Transformation:

The life insurance industry is significantly transforming due to various internal and external factors. The sector faces challenges such as changing demographics, evolving customer preferences, antiquated systems, and outdated business models. For example, as the population ages, the demand for life insurance products is decreasing, and insurers must adapt their products and services to cater to the younger generation. Moreover, customers are increasingly looking for customized insurance solutions that cater to their specific needs, necessitating innovation and flexibility in product design and distribution channels. Lastly, traditional life insurance business models are often characterized by high costs and slow processes, which can make them less attractive to customers seeking digital and streamlined experiences.

The life insurance industry is also facing significant disruptions from technological advancements and increased competition from new players in the market. Insurtech startups and other technology-driven companies challenge traditional insurers with innovative business models that leverage data analytics, artificial intelligence, and machine learning. These new players offer customers a more personalized and user-friendly experience, and traditional insurers must invest in technology to keep up with the competition. Additionally, regulatory changes and shifts in the economic and political landscape can impact the life insurance industry, creating the further impetus for transformation.

The life insurance industry must adapt and transform to stay relevant and competitive in an increasingly complex and dynamic business environment. Insurers need to embrace digital technologies, optimize their operations, and adopt innovative business models that cater to evolving customer needs to remain successful in the long term.

Business Capabilities are a Cornerstone for Transformation

For a life carrier to transform successfully, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

Life Insurance Business Capabilities Model Deliverables:

The Life Insurance industry business capabilities model comprises ~700 capabilities across three levels and includes the following editable artifacts:

• An Excel spreadsheet with the grouping of capabilities.
• A PowerPoint format with the top three levels presented in a nested visualization.
• A Word document with capabilities in a multilevel list format.
• High Tech Capability Definitions (at Level 3)
• Capability KPIs (Key Performance Indicators) (at Level 2)

How to Use the Life Insurance Capabilities Model?

A business capabilities map is a fundamental and foundational deliverable in the business architecture continuum. The Capstera Life Insurance capabilities model encapsulates end-to-end aspects of the business with a detailed, multilevel capabilities list.

There are several benefits from business capabilities, including, among others:

• Foster alignment between business and IT using capabilities as an everyday language.
• Capabilities are a structurally sound and internally coherent abstraction of business functions.
• A capability-based roadmap eliminates redundancy and replication and focuses on capability evolution.
• Juxtaposing capabilities and systems/applications provide a footprint analysis and can lead to better application portfolio rationalization decisions.

The life carrier business capabilities map decomposes components up to three levels. Created by business architects and industry domain experts, the capabilities list is detailed, in-depth, and conforms to the construct of MECE (mutually exclusive and collectively exhaustive).

Who should use the Capabilities Matrix?

The life insurance business capabilities matrix is a generic model; hence, it is a starting point, not the final product. (Please note that a generic map covering multiple areas will not be specific to your specific company or business model; that is where our professional services can help customize and detail the capability model. Or you can modify and tailor it to your needs internally.) The primary users encompass:

• Business architects and enterprise architects.
• Leaders focused on business transformation.
• Product and program managers enabling capabilities.

Why Purchase a Business Capabilities Map?

Defining business capabilities from a blank slate takes time and effort and delays time to value. Instead, a pre-built and customizable business capability map helps provide 60-80% of capabilities allowing internal teams to focus on what is missing or unique to their companies.

And the cost is less than an inexpensive team dinner or the loaded cost of 4-5 team members brainstorming for an hour.

And far less than the deliverables consulting firms produce at over $100,000 or more, and compared to that number, the cost of our capabilities models is a fraction (a rounding error.)

Even if you already have a capability map, you could use our version to compare, validate, and potentially include missing capabilities.

A Note About the Artifacts:

• Business Capabilities Matrix: A functional area occupies one box in many business capability maps. Some may wonder why we decomposed the capabilities into 100X or more capabilities. We humbly submit that one box or entry in a one-page diagram is Wall Art, not an implementation tool. Decomposing capabilities into a nested list of granular items will help understand a capability’s depth, breadth, scope, and importance. It is also possible that some capabilities in our matrix may not be relevant to you. Similarly, we may have captured and documented some relevant and essential capabilities of your firm.
• Capability Definitions: We include capability definitions at Level 3. Please feel free to modify it to your company’s needs.
• Capability KPIs (Key Performance Indicators): We added a few KPIs for capabilities (mostly at Level 2) to get you started. You may not measure these KPIs in your company and have an entirely different set of metrics. Again, use them as a springboard, and not debate the applicability to your firm.

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