INSTANDA and ServiceNow Partner on Digital Insurance
Core insurance platform INSTANDA has announced an integrated solution with ServiceNow to deliver an end-to-end digital insurance experience. The partnership aims to automate the entire lifecycle, from quote and bind to policy servicing and claims, through integrated agentic platforms.
- The INSTANDA platform is a cloud-native, no-code policy administration system built on Microsoft Azure's Platform-as-a-Service (PaaS). It operates on a single code base, available in both multi-tenant and single-tenant deployments, and features open API architecture for seamless integration with third-party systems. This design allows insurers to create and manage digital insurance products, supporting the full policy lifecycle from quote and bind to customer self-service. - ServiceNow's contribution to the partnership centers on its AI Platform, which automates workflows across claims, servicing, and underwriting. The platform uses AI agents for tasks like claims triage, routing, and resolution, aiming to reduce manual effort and improve decision accuracy. For instance, in motor insurance, it can automate surveyor assignments based on expertise and location, and process simple claims instantly using rules-based automation. - From a technical architecture perspective, the integration addresses the limitations of legacy monolithic systems by enabling a more modular, microservices-based approach. This aligns with the "strangler pattern" for modernization, where new API-driven services gradually replace old components without a complete system overhaul. Such event-driven architecture (EDA) decouples application components, improving scalability and resilience. - For insurance operations teams, the value of this partnership is measured by its impact on key performance indicators (KPIs). These include the loss ratio, combined ratio, customer retention rate, and claims processing time. Digital transformation initiatives leveraging such integrated platforms have been shown to improve these metrics, with some property and casualty insurers seeing opportunities to double their profits. - The partnership's use of agentic AI, where autonomous systems manage entire workflows, reflects a significant trend in the industry. In underwriting, these AI agents can orchestrate data collection from diverse sources, perform risk analysis, and suggest policy terms with minimal human intervention. This shift toward multi-agent systems, where specialized AIs collaborate, is seen as a foundational change in financial system design to handle complex, real-time decision-making. - The venture capital landscape for insurtech shows a strong preference for B2B SaaS solutions that drive efficiency and automation. In Europe, the median early-stage deal size for insurtechs reached a record high of $4 million in 2024, with a notable trend toward AI-native founders who are building proactive risk management platforms from the ground up. Venture firms like Plug and Play, Anthemis Group, and MS&AD Ventures are among the most active investors in the sector.
