Transform your insurance software: Never be legacy again!
Are you one of those individuals like me who will drive your vehicle forever to ensure that you get absolutely every single kilometer possible out of it? Regardless of whether it is starting to rust, you have to jump-start it in the cold or the power locks refuse to work anymore? Darn it though, it has been a good car…it certainly doesn’t owe me anything, I’ve gotten my money’s worth and it has served me well for almost eight years now.
Is it that I just don’t like change or that I don’t want that nagging car payment again?
Reality is though, every time I turn around, it is costing me money to fix this or that. If I am honest with myself, it really isn’t fitting my needs anymore either. And I do have my eye on an E-Class Mercedes. Now there is a car that is proven in the market place, a best-in-class vehicle for both safety and comfort.
Maybe it’s time to re-assess my situation.
Is your insurance software evolving or standing still?
I see similar things happening in the insurance industry every day. As early adopters of imaging and document management systems, insurers got a leg-up on the competition in terms of efficiency and customer service. But more and more of these companies are finding that they are outgrowing their existing systems and that they are no longer meeting their needs with the changing times.
Consumer expectations have changed; customers expect policies to be issued faster and claims handling to be more responsive. However, many insurers find themselves held back by disparate legacy document imaging and management systems that are fraught with manually intensive processes – making case management unwieldy for carriers and customers alike.
As an industry expert, my view is that insurers who wish to maximize customer experience and operational efficiency must embrace change. They need to adopt best-practice migration strategies to replace legacy applications with modern, flexible insurance software that reflect a more integrated approach to content, people and process.
The best technology is flexible, adaptable and designed for an unknown future, according to PropertyCasualty360. Here are their top challenges that insurers face trying to deal with legacy systems:
- Insurance companies have been engaged in a decades-long quest to retire and replace their legacy systems and applications, and it hasn’t been easy.
- Carriers found that no one really knew the old programming languages, or how the rules that were in the system actually worked. Some firms even brought retirees back to work to help on these projects because they held the institutional memory.
- Some companies “wrapped” their old systems with new applications to extend the life of their legacy systems.
Why try to get one more year out of that old clunker to only end up in a worse situation?
Beyond your core: An enterprise insurance software solution
System modernization has become a top priority for insurers worldwide, but the focus has been primarily on replacement of core systems. Why would you want to change only the chassis on your car and not the tires too?
Business content, the backbone of the business, must transform for insurers to gain true efficiencies and provide real value with the investments that they are making in core system replacements. It is the combination of modernizing the two technologies together – document management and your core – that will provide more value than each independently.
Oftentimes, however, insurers will feel it overwhelming to embark on modernization project for both core system and an ECM solution at the same time. But in reality, that is their best option: A synchronized modernization of their cores and ECM solutions results in the lowest overall implementation effort.
Why? Because it allows insurers to achieve the tightest integration possible between the two systems. By implementing concurrently, every aspect of the interaction between the solutions is immediately addressed and results in almost tailored-made comprehensive solutions.
Consideration should be given to replace both mission critical applications with modern systems and a mature enterprise content management system. Clearly, the way to go is to invest in a leading, best–of-breed solution, just like my possible/upcoming Mercedes purchase.
Here is to never being legacy again!