To compete in the evolving insurance market and provide better services to customers, Aviva Italy wanted to create a customer portal that would integrate massive amounts of data from multiple sources. Using Red Hat Fuse, Aviva worked with a Red Hat Advanced Business Partner to create the MyAviva portal as the first step of its digital transformation journey. As a result, Aviva gained a unified, consistent overview of each customer and can deliver innovative digital services faster and more cost-effectively.
- Established a streamlined customer experience by uniting multiple, isolated data sources into a single view
- Increased application delivery efficiency by 30% by eliminating paper-based communications and implementing an agile development approach
- Reduced operating and maintenance costs with subscription-based software pricing and shift from CapEx to OpEx model
Competing in a digital market
The insurance industry is often perceived as routine and traditional. However, after centuries of business, it recently began a shift to align itself with digital trends. New entrants to the industry include digital leaders like Apple and Google, and their offerings appeal to a digital-savvy market.
With a 300-year history, Aviva is one of the world’s leading insurance companies. To better serve its current 33 million customers and compete with new market entrants, the insurance provider sought to create a digital strategy and vision.
“This market is about targeting consumers who expect a digital experience and are unfamiliar with traditional insurance branches and agencies,” said Antonio Perrotti, CIO of Aviva Italy. “The industry is adjusting to better interact with customers, but as a 300-year old company, we have a complex internal structure with overlapping processes. We were not aligned with the agility of new market entrants, so we needed to quickly undergo our digital transformation.”
To meet these industry shifts, Aviva Italy sought to reform its existing IT architecture into a more integrated, digitally focused environment with the customer as the focus of every component and function.
Building a digital architecture
With guidance from Gruppo Euris, a software and IT service firm and Red Hat Advanced Business Partner, Aviva deployed Red Hat Fuse as the foundation of its new, customer-focused architecture.
“On our systems, we have about 2 million customers, with 12 million related policies, around 800,000 claims, and 530 million data records,” said Perrotti. “We wanted, first of all, to gain a single view of each customer, with one single functional domain where the information of each customer is collected and harmonized in a homogeneous way.”
Red Hat Fuse is a lightweight, flexible platform that supports rapid integration to collect customer data from Aviva’s different applications. This data is then aggregated for comprehensive visibility via the company’s MyAviva portal.
With these capabilities, Red Hat Fuse delivers data in the required form, at the right time, and to any application or user. The solution was implemented, tested, and fully deployed in production in under six months. “We started from scratch, more or less,” said Perrotti. “We didn’t have a reference point within the business to use as a template, so this timeline is very impressive. Our business information is now successfully integrated, thanks to Red Hat and Gruppo Euris.”
Improving the customer experience with streamlined, digital customer experience
With its MyAviva portal, built with Red Hat Fuse, Aviva has started transforming its business by integrating its customer experience into a single location. Existing customer-facing services can be accessed via this channel, and Aviva can also use it to quickly launch new, innovative digital services.
“Our strategy is to unify a lot of different front-end components for supporting agents, banks, financial advisors, customers, and others to provide a consistent experience via MyAviva,” said Perrotti. “We can also better support our distributors and quickly introduce innovative products in their offerings. It’s a significant transformation.”
As part of its digital transformation with open source software, Aviva also eliminated the need for costly, paper-based communications with customers.
“This deployment was a crucial starting point from which we could develop our entire digital experience,” said Perrotti. “Apart from basic functions that are required by law, we started removing the need to interact with customers using paper. We now publish digital documentation in MyAviva to distribute to customers.”
Greater agility and efficiency
With the lightweight integration capabilities offered by Red Hat Fuse, Aviva can develop and deploy digital offerings in a more agile way. The MyAviva portal provides a flexible environment that can be constantly adapted to integrate new technological components, helping the company meet changing market demands faster.
“MyAviva has been built with a full agile approach, meaning we have weekly delivery scheduling. We can now very quickly support new requests from within the business.”
The new platform is 30% more efficient than Aviva’s traditional application environment in managing service deliveries, with new user requests fulfilled much more quickly. As a result, Aviva can improve performance without expanding its staff. “We’re currently managing the platform with a small number of employees. They not only successfully run the application on a day-to-day basis, but also implement new functions,” said Perotti.
Lower software costs
Red Hat’s subscription-based pricing model helps Aviva keep its software costs low compared to traditional, proprietary technology licenses. Eliminating paper-based communications by creating the MyAviva portal has helped the insurance provider further reduce its costs. The new solution’s operating costs are 30% less than Aviva’s previous solution, and maintenance costs have been reduced by up to 50%.
Previously, a project like this would have required dedicated real estate, skilled employees and loads of time—all of which costs a lot of money.
In addition, transitioning IT from a capital expenditure (CapEx) model to an operating expenditure (OpEx) model has provided Aviva with greater flexibility to take advantage of the latest technology at a fraction of the cost by eliminating the need for dedicated physical space, employees with related skills, and lengthy development times.
“Red Hat’s open source subscription approach lets us control costs based on OpEx rather than CapEx,” said Perrotti. “This capability is important to cost-effective, responsive financial management of IT structure in general.”
Extending an innovative digital journey
With the successful creation of the MyAviva portal to deliver services to customers and partners, Aviva is an example of how an organization can embrace an agile approach and modern technologies to flexibly manage services, control costs, and enhance its customer experience.
Aviva is now looking to the next steps of its digital journey, such as introducing analytics, customer relationship management (CRM), and business orchestration capabilities.
“Our ambition is to be the best in our market at delivering digital customer-oriented insurance services,” said Perrotti. “We expect to continue working with Red Hat solutions to scale our current technology stack, expand our single view of the customer, and introduce additional data.”
Solidity, Simplicity, Innovation: the three keywords of Aviva. Solidity: With over 300 years of history and 33 million customers in 16 countries, Aviva is one of the world’s leading insurance groups. Aviva Italy has a large presence in the country with over 500 nontied agencies, financial advisors, and agreements with leading Italian banking groups (such as UBI Banca, Unicredit, and Banca Popolare di Bari). Simplicity: In such a complex and articulated sector, Aviva has chosen simplicity as a basic code of relationship with its customers with clear, transparent and immediate solutions and communications. Innovation: Aviva invests in the future, on fintech technological innovation to improve customer relations, and more.