NelsonHall recently attended the DXC Connect Insurance Executive Forum in Charleston, South Carolina. The event highlighted DXC Technology’s investment in AI-driven solutions for the insurance industry. A key theme was DXC’s commitment to helping insurers address their ‘technology and process debt’ through community-driven collaboration, enhanced application modernization, and AI-driven operational effectiveness using its DXC Assure platform.

Community-driven collaboration

DXC, like other companies, aims to capture industry insights through advisory councils. In particular, DXC uses structured AI advisory groups to identify and prioritize insurance-specific AI solutions over generic options. Ongoing knowledge feedback loops between client engagements are then incorporated into system testing of these emerging concepts against real-world insurance industry challenges for further model refinement.

Insurers face substantial technology & process debt

A substantial amount of technology and process debt is being faced in the insurance sector, representing ~$180bn-$200bn in hidden costs tied to maintaining legacy systems. Approximately 70% of IT budgets is consumed by legacy system maintenance, and insurers struggle with complex integrations that inflate costs and prolong implementation timelines. These complexities can compound over time with temporary workarounds, further exacerbating technical debt. As a result, insurers often experience deteriorating customer experience despite significant investments.

DXC is addressing these issues through emphases on IT modernization, automation, and cloud-agnostic solutions guided by its ‘racetrack’ framework, providing insurers with targeted maturity assessments and actionable insights.

Hastening application modernization

DXC has introduced products to hasten and facilitate application modernization. These include:

• Community Accelerator – an AI-driven framework to facilitate rapid, community-wide deployment of product updates and enhancements to reduce redundant development efforts
• Conversion Accelerator – combining insurance domain expertise and AI-powered tools to streamline insurance application modernization and reduce process complexity.

Streamlining and expediting policy & claims management

Key AI-led automation initiatives include:

• Assure BPM – to enhance operational efficiency across the insurance policy life cycle with AI-driven data integration and workflow optimization. DXC platforms are integrated with ServiceNow to optimize and streamline policy management, billing, and payment processes to improve the customer experience
• Assure Claims – to accelerate claim processing and improve fraud detection. Assure Claims incorporates intelligent document processing (IDP), using GenAI to extract structured and unstructured data from multiple document formats and leveraging historical data to increase levels of fraud detection
• Assure Answers – a GenAI capability that supports use cases such as an AI-powered chat service for underwriting, policy, and product or claim documentation summaries. For example, it can expedite processing policy cancellations, achieving a targeted ~30% reduction in cycle times. This is driven by the intelligent policy cancellation workflow:

1. The policyholder initiates the process by sending an email to notify the insurer of their cancellation request

2. DXC Assure Answers automatically verifies both the email and policy information contained within the email

3. The CRM dashboard is automatically updated, classifying the policyholder’s request as a ‘cancellation’ to ensure accuracy and eliminate manual errors

4. The cancellation is then processed, and a confirmation email is sent to the customer. This automation reduces dependency on manual intervention and allows staff to redirect their efforts toward more high-value, customer-centric activities.

Summary

DXC Technology is targeting the insurance industry’s dual challenges of technology and process debt, empowering insurers to modernize legacy platforms more effectively and mitigate risk before technological and process debt reaches a critical inflection point. At the same time, the company is introducing GenAI to enhance operational efficiency and insight across underwriting through claims management.