CIOs are looking beyond investing in new technology and are beginning to shift organizational practices. According to Novarica, Agile development is the IT practice with the highest level of planned activity in 2018, and is now widely implemented by insurance carriers. Insurers are currently at various levels of Agile adoption and maturity; when fully mature, the Agile process offers both greater flexibility and the capability to take full advantage of business opportunities that would otherwise be lost.
Adapting to Agile methodology certainly comes with challenges; its characteristic iterative development with fast failure/fast recovery requires enterprise-wide support to ensure success. As with adopting any new IT practice, commitment to changing organizational culture is a prerequisite. Agile is a team effort—successful implementation must be preceded by changes in traditional budgeting, planning, and enterprise mindset.
However, the benefits of Agile are considerable. Agile focuses on delivering a series of products in short durations—allowing for ongoing adjustment, refinement, and organic evolution of work product. By providing a series of incremental successes and tangible results, Agile also drives team engagement and morale. Additionally, fast delivery of an MVP generates assets sooner, therefore enabling iterative capitalization. Regardless of Agile approach, CIOs should adopt the framework that best fits the organization.
For more on this, see our recent brief, Agile Adoption in Insurance.
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