How Vitech is navigating the future of insurance and pension administration

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In an industry marked by rapid technological advancements and evolving regulatory landscapes, Vitech is a longtime leader of innovation for the insurance and pension administration sectors. Under the leadership of CEO David Burns, Vitech has solidified its position as the preeminent Software as a Service (SaaS) platform, providing unparalleled solutions to clients including MetLife, Prudential, Mass Mutual, and the New York City Police Department, among others. 

In a comprehensive interview, Burns delves into the core value proposition of Vitech, addressing the current challenges within the industry, and shedding light on the company’s strategic pivot to a SaaS model — a move that has significantly enhanced client service and positioned Vitech for sustainable growth. With a keen focus on operational efficiency, security, and innovation, Burns outlines the milestones that underscore Vitech’s commitment to advancing the insurance and pension administration landscape, preparing clients to navigate the complexities of today’s market with confidence and foresight.

Can you explain at a high level the value proposition that Vitech provides to its clients? 

David Burns: Vitech leads the market as a Software as a Service (SaaS) platform for enterprise benefit administration in Group Insurance and Retirement sectors. We tackle our clients’ most intricate business challenges by providing essential end-to-end administration capabilities that cater to the evolving needs of these industries.  

 At Vitech, our mission is to future-proof insurance and pension administration for our clients. Understanding the financial pressures they face, our solutions are not only cost-effective but also meticulously handle data and streamline processes to uphold business promises.  

We manage frontend digital engagement and backend administration, incorporating analytics and artificial intelligence to enhance operational efficiency and cost-effectiveness.  

We believe seamless orchestration from front to back is vital for automation and improving servicing throughout the group insurance and retirement lifecycle.  

Vitech’s managed services offer a comprehensive solution leveraging the resilience, scalability, and security of AWS, providing clients with a highly available, performant, and secure operating environment. Security is paramount to us, with a focus on maintaining the confidentiality, integrity, and availability of information.  

We provide ongoing support, training, and a holistic product strategy, acting as a trusted ally to ensure clients remain ahead in the dynamic landscape of insurance and pension administration.  

With our technology, we safeguard our customers’ health and wealth. 

What are some of the challenges that the insurance or benefits industry faces right now that Vitech is helping clients navigate? 

Burns: In the ever-evolving landscape of insurance and benefits, Vitech serves as a catalyst for overcoming key industry challenges. The rapid pace of technological advancements poses a risk of obsolescence, but our Software as a Service (SaaS) model ensures clients stay current, mitigating these risks effectively. Operational inefficiencies, a common hurdle, are addressed through Vitech’s commitment to a 20-40% improvement in workflows, optimizing resources and reducing Full-Time Equivalents (FTEs) needed for equivalent work. 

With the increasing reliance on digital platforms, data security is paramount. Vitech tackles this concern head-on by offering cloud-based solutions with AWS integration, ensuring heightened security and compliance with industry standards like Single Sign-On (SSO). In the face of the industry’s demand for agility in product launches, our V3locity platform facilitates swift introductions, enhancing the customer experience and maintaining our clients’ competitiveness. 

Collaboration and integration complexities are streamlined through Vitech’s strategic partnership ecosystem, featuring System Integrators (SI) and training via Vitech Academy. Financial pressures on insurance administrators are significant, and Vitech addresses this by delivering cost-effective solutions, enabling efficient resource management while ensuring accuracy in financial processes. Continuous improvement is at our core, with a focus on Research and Development (R&D) backed by a substantial portion of revenue, minimizing technological debt and dependencies for a smoother client experience. By proactively addressing these challenges, Vitech empowers its clients to navigate the dynamic insurance and benefits industry, fostering innovation, efficiency, and security. 

Could you share how the company’s recent pivot from a service model to SaaS has enhanced how you serve clients? 

Burns: Vitech’s recent pivot from a service model to a Software as a Service (SaaS) platform has significantly enhanced our ability to serve clients in several key ways. By transitioning to a well-designed enterprise SaaS model, we’ve standardized our business product and technical capabilities, enabling us to better meet the evolving needs of our clients. 

The shift to SaaS has proven instrumental in reducing the Total Cost of Ownership (TCO) for our clients. This financial benefit empowers them to strategically allocate resources, focusing on core business activities. The streamlined delivery model has further facilitated scalable growth for both Vitech and our clients. 

In terms of security, our advanced cloud security measures implemented during this transition ensure the safeguarding of sensitive data and protect against evolving cyber threats. This heightened security not only instills confidence in our clients but also ensures that their investment with Vitech is both scalable and future-ready. 

Additionally, the move to SaaS has accelerated the time to value for our clients when compared to traditional build or highly customized commercial off-the-shelf solutions. This means quicker and more efficient implementation, allowing clients to derive benefits sooner. 

In essence, our pivot to a SaaS model represents a transformative journey that enhances efficiency, reduces costs, and positions our clients for a future-proofed and resilient future. The focus on standardized, world-class solutions, combined with sustainable value and market-leading growth, underscores our commitment to providing an advanced SaaS platform that elevates the overall client experience. 

What were some of the inflection points or pivotal moments in Vitech’s journey that have helped the company grow so successfully? 

Burns: Vitech’s successful journey toward growth through the transition to an enterprise Software as a Service (SaaS) business model encountered pivotal moments that reshaped our approach in people, processes, and technology. Historically a market leader in group insurance and public and large multi-employer pensions, the challenge of steering a well-established team and company toward this transformation demanded careful consideration. 

A critical strategic element was presenting a compelling case for change, an imperative task with little margin for error. Once buy-in was established, maintaining commitment throughout the transformation journey became paramount. Active communication and the execution of changes in people, processes, and technology were guided by the Five I’s: Innovate, Inform, Invest, Implement, and Improve. 

The second inflection point revolved around customers on non-SaaS solutions contemplating the value proposition of switching to a SaaS model. The case for change had to be positioned clearly, resonating with their valued members/constituents, aligning directly with operational and strategic plans, and meeting the increasing demands of the market and their boards. 

Despite the challenges, the shift to a SaaS model brings numerous benefits. Managing the cultural shift within the organization required a concerted effort to empower self-sufficiency and efficiency among our teams. Fostering a mindset aligned with the new strategy ensured that every team member contributed to the transition’s success. 

A critical component of executing this strategy change was breaking down knowledge silos and enhancing knowledge retention. Significant investments in training and knowledge-sharing initiatives helped to facilitate a smoother transition. The training of our teams in SAFe Agile played a pivotal role in addressing challenges associated with our strategy shift. This ensured that the entire organization was on the same page and well-prepared for our new SaaS-oriented approach, contributing significantly to our successful growth journey. 

What milestones has the company recently reached that you are most proud of? 

Burns: We’ve achieved several significant milestones recently that we’re particularly proud of. In 2023, we successfully launched four new products, expanding our offerings to better meet the needs of our customers. Our dedication to excellence has been recognized with the receipt of seven XCelent Awards, highlighting our commitment to innovation and quality. 

Additionally, Datos Insights has honored us three times as a “Dominant Provider,” acknowledging our leadership and influence in the industry. Moreover, our excellence as a provider has been affirmed by ISG Provider Lens™, where we’ve been recognized as a leader three times. Everest Group ranked Vitech the highest in its Matrix® Assessment for Group Insurance Policy Administration software, underscoring our strong market position and performance. Celebrating our 20th Anniversary, our Vitech India office stands as a testament to our enduring presence and growth. 

Furthermore, we’re honored to be selected for the second consecutive year as a RippleMatch Campus Forward Award Winner in 2024, recognizing our dedication to fostering talent and innovation. Notably, our API ecosystem continues to expand, boasting 32,000 API resources covering over 70,000 operations, showcasing our commitment to technological advancement and accessibility. These milestones collectively reflect Vitech’s ongoing dedication to excellence, innovation, and customer satisfaction.