Running a Tight Ship
It doesn't hurt that Mark Schwarzmann is, by his own admission, a "gadget guy" by nature. But he identifies two more purely fortuitous factors that have shaped a keen aptitude for applying technology to the challenges he faces as president of insurance, annuities and product distribution at Ameriprise Financial (Minneapolis; $7.5 billion in revenue).
Schwarzmann had the foresight to minor in computer science while pursuing an undergraduate degree in economics and business at Lafayette College (Easton, Pa.), and he had the good fortune to earn a lead role in the quality and process area in GE's (Fairfield, Conn.) Power Generation business early in his career, where he rose to the position of senior vice president, wealth management services. "That allowed me to get an appreciation for process management," he says. Those two factors together have driven him habitually to inquire into the best way to accomplish an objective. "That has been a hallmark of the way I view my job, regardless of what industry it has been in," Schwarzmann says.
Schwarzmann further honed his life industry and technology acumen at insurance and banking software vendor Allfinanz (Dublin, Ireland) where he was CEO for three years. As a result, he says, "I have, perhaps, a better appreciation than most for the application of technology for the insurance industry, and, specifically, how you can use the ACORD (Pearl River, N.Y.) tools and ... other vehicles to better deliver our products to both the producer and the consumer."
Since Schwarzmann joined Ameriprise in 2003 (then American Express Financial Advisors), he has applied his aptitude to increasing the company's market share in the variable universal life and variable annuity product segments. Through Ameriprise's RiverSource brand, Schwarzmann oversees distribution of insurance products manufactured by Ameriprise companies IDS Life and American Enterprise Life, as well as the corporation's investment products.
Schwarzmann's Allfinanz experience also taught him to appreciate the importance of tighter alignment between the business and technology. Like many companies, Ameriprise was plagued by a tendency on the part of the business to hand IT loose requirements and expect to be able to refine their expectations later on. "Obviously, that leads to cost and time problems as you get deeper into development projects," Schwarzmann says. "Consequently, I have been adamant that my team on the business side deliver definitive requirements and lock them down before we go to the technology team to actually implement something."
To support that increased degree of discipline, in March 2005 Schwarzmann's business reorganized around a single project management office and a single base for all its business and business systems analysts.
Be on the Offensive
Up-front work also characterizes Schwarzmann's approach to technology governance. Schwarzmann believes in avoiding "defensive investment, when you're doing something to avoid doing something else."
But even when in an aggressive or offensive mode, poor definition of what is required can undermine success, he argues. "We are very disciplined in the way we do RFPs [request for proposals], and I think that pays dividends," Schwarzmann says. "If you understand your requirements, that translates into an RFP that makes sense, and the decision you make at the front end should be the appropriate one. That, then, can be the basis upon which you can do your subsequent analysis as to 'Did I get the return I expected?'"
In addition to improving the technology process, Schwarzmann is also driving the use of standards. His organization is currently engaged with the National Association for Variable Annuities (NAVA) and ACORD on a straight-through processing initiative that he hopes will lead to reduced dependence on third-party providers. "Much of that today is done by way of systems such as Annuity.net (Los Angeles), Blue Frog (Pompano Beach, Fla.), etc., so I think that component can be optimized further," he says.
Mark Schwarzmann
Ameriprise Financial
"I have, perhaps, a better appreciation than most for the application of technology for the insurance industry."
Career: Prior to joining Ameriprise Financial in 2003 as president of insurance, annuities and product distribution, Schwarzmann was CEO of Allfinanz (Dublin, Ireland), having been promoted from the position of COO/Americas in 2001. Earlier he had held various management positions at GE, including SVP, wealth management services, GE Financial Assurance; and SVP, financial institution services.
Education: Bachelor's degree in economics and business with a minor in computer science from Lafayette College.
Hobbies/Pastimes: Travel, golf, sailing.
To hear more from the 2006 Tech-Savvy CEOs, go to: www.insurancetech.com/podcast
Tech-Savvy CEO
Leadership, Vision and Collaboration: Insurance & Technology's Tech-Savvy CEOs 2006
It's fair to say that behind every successful insurance CEO you'll find an effective CIO; no business leader who dismisses the importance of technology will fare well against competitors in the long run, and those not trained in technology must collaborate effectively with those who are.
Real-Time Vision
Dan Carmichael's career-long interest in technology standards culminated in a successful corporate turnaround at Ohio Casualty.
Crossing the Bridge
Elizabeth Haar's technology-driven business strategy led to Accident Fund Insurance's e-business model solution and national expansion.
Running a Tight Ship
Mark Schwarzmann's up-front discipline improves the technology process and drives the use of standards at Ameriprise Financial.
Information Is Power
Ronald Williams champions technology to support the creation of a high-performance culture as Aetna innovates consumer-directed healthcare.
Making Things Easier
By keeping it simple, Kent Cannon drives IT to facilitate business growth at Beneficial Financial Group.
Getting Closer
Insurance company CEOs might not yet know as much about technology as their technology officers might hope, but they know they need to be informed -- and so do the boards that evaluate their performance.
Changing the Game Through Technology Leadership
Michael D. Fraizer, CEO, Genworth Financial, one of Insurance & Technology's Tech-Savvy CEOs of 2005, shares his thoughts on the centrality of technology and the disciplines of innovation in shaping the insurance enterprise of the future.
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio
Tweet This