Scalepoint, a leading provider of digital solutions for claims management in the insurance industry, is now optimising its business and embarking on a potential growth journey by acquiring INPAS technology.

More than 80 per cent of Danish insurance companies already use Scalepoint's SaaS technology, which supports their claims management and includes software, operations, maintenance and compliance. There is no doubt that companies have an increased focus on developing their IT platforms, so the need for innovative technological solutions is present. Therefore, it is safe to assume that Scalepoint now looks set to meet the ever-changing demands and challenges of the industry.

Reaching out to small and medium-sized companies

According to the company, the investment in INPAS technology is not only a strategic expansion of Scalepoint's portfolio; it also allows the company to bid for small and medium-sized insurance companies and give them access to an advanced core system delivered as SaaS.

"We are a 20-year-old company that has historically delivered claims management systems for insurance companies. Originally, our solutions were add-ons to the companies' core systems, and then we also developed an actual core system for all claims management. Our solutions are completely different because we deliver them as software-as-a-service (SaaS). This means that we provide software, operation and maintenance. Traditionally, insurance systems have been delivered on-premise, where customers had to finalise the system and take care of the ongoing operation and maintenance themselves. So, using SaaS is a paradigm shift for the insurance industry. We can now offer a core system that includes claims management and policy administration, so it's a total solution. And because we deliver it as SaaS, it is both cheaper and less risky, and since the system is updated every week, it simply doesn't silt up," says CEO Tue Høilund-Carlsen to InsideForsikring and elaborates:

"With the acquisition of INPAS, we are ready to expand our portfolio and will reach out to more small and medium-sized insurance companies in the coming years. We have screened the market, and at least 20 per cent of the insurance market is set to change core systems within five years. We see an opportunity to take our business to a new and higher level. Hopefully, we will have the first implementation agreements by the end of 2024. I can say that we are currently in dialogue with several companies.”

One of the best systems

Tue Høilund-Carlsen emphasises that it will take a few years before Scalepoint has many customers on the policy side. Still, he does not doubt that Scalepoint is on a growth journey simply because the new system has several economies of scale that benefit both the insurance companies and Scalepoint.

"We have the experience and are specialised in doing this. In fact, I would say that what we already do on the claims side is world-class. With INPAS, we will have one of the best systems in the world in this area. Scandinavia is one of the leading regions in this market, even more so than the US."

Specifically, INPAS will enable insurance companies to increase their digital competitiveness, ensure continued compliance and gain access to a technological platform with weekly automatic updates.

A total solution building a skyscraper

The unified product, which will be known as CORE, unites Scalepoint's existing solution, ClaimsCORE (claims solution), with the new addition, INPAS technology, which forms the foundation of PolicyCORE (policy solution).

This creates a comprehensive and cohesive solution that meets all aspects of insurance companies' needs. All customers use the same solution, which means sharing costs with everyone else.

"This will especially benefit the small and medium-sized insurance companies that have so far struggled to keep up with the big players in the technology space," says Tue Høilund-Carlsen, adding:

 "We can see that companies are interested in going to the cloud, sharing platforms, and having their systems updated on an ongoing basis. In addition, there is increasing legislation in the area, which creates legal requirements that are difficult for companies to handle. For example, there are requirements for increased digitalisation, and here, we can help companies manage this large-scale operation.

At the same time, the cost of IT solutions is exploding, so companies need to act. And here we are, ready with total solutions. We build a skyscraper, and then each company can rent a single floor, which they can customise with us according to their individual needs.

But the external framework is the same, so we can handle the economies of scale necessary to deliver the best solutions."

Scalepoint currently has Danish and global insurance companies in its portfolio, including GF Forsikring, Sønderjysk Forsikring, Lokal Forsikring, Topdanmark, Tryg, LB Forsikring, and international players such as Allianz, Gjensidige, and Zurich.

This article was originally published by InsideForsikring.