The insurance industry is increasingly resorting to digital transformation and the benefits that it is bringing. As the digital revolution is ushering in the insurance sector, customer expectations are also escalating. With these high expectations, insurers are under constant pressure to adopt digital measures. However, the legacy systems challenges are a hurdle. Read on to explore some of the challenges of legacy systems in insurance and the way to effortlessly integrate legacy modernization.
Why Insurers Refrain from Legacy Modernization?
Most of the largest insurance companies rely on outdated legacy systems for Insurance operations. Only one in ten insurers have less than 50% legacy infrastructure. Insurers heavily rely on outdated legacy systems because of their capability in processing high volume transactions. These legacy systems are robust and reliable and have been used by insurers for years that increases its preferability.
However, there are significant number of challenges which these legacy systems bring.
Challenges in Legacy Systems
Core Complexity with Core Systems!
Every insurer using legacy systems are facing these challenges:
Security
50% of the insurance companies cites security as their biggest reason for modernizing legacy applications and data in 2023. Older legacy systems lack the security features for dealing with modern cyber security assaults that puts confidential information at risk
Operational Hurdle with Operational Costs
Maintaining legacy system consumes 70% of an organization’s IT budget. This cost increases as the systems get older, and maintenance becomes a challenge due to lack of knowledge for maintaining such systems
Compliance and Regulatory Risks
Insurers face increasing regulatory as well as compliance requirements from regional and global regulators. Because of these numerous policy changes and legacy data, platforms do not conform to the industry standard data scheme making it an insurance technology challenge.
Legacy Modernization Benefits for Long Insurance Legacy
Here are the top benefits that legacy modernization will be bringing for insurers:
Cost Saver
No insurer would like to bear additional costs for legacy systems. A well-maintained legacy system will be helping to reduce technological maintenance costs by 5%. Not only that, but you will also be getting an 80 percent reduction when the processes are automated with modern legacy systems.
Maximizing Revenue Generation
Legacy systems in insurance can prove to be a revenue generator when it is well maintained. Adopting modern legacy systems will increase premium growth by improving effectiveness as well as target marketing, maximizing cost selling and improves pricing.
Enhanced Risk Mitigation
Legacy modernization helps in risk mitigation by adhering to company underwriting and standards. The modern systems are designed to enhance business capability that helps in risk mitigation associated with regulatory compliance
How iNube’s Core Policy Administration System Can Help?
iNube’s core policy administration system is designed for contemporary business models that are highly configurable and secure. This provider helps you with the tools and features which will be transforming your core legacy system. Our policy administration system is robust and scalable across different LOBs making end-to-end policy management easier and efficient.
No more Outdated Legacy Systems with iNube!
You can book a session with us to know more!
