The Hidden Costs and Challenges of Insurance Legacy Systems Modernization
In this TCS sponsored report by Novarica, 10 large P&C and L/H/A multi-billion dollar insurers discuss the hidden costs and challenges that they are facing in their Legacy Modernization initiatives.
Excerpts from the report:
Novarica says, “Legacy systems are fine, as long as insurers are serving legacy customers, with legacy products, with legacy processes, through legacy channels.”
But few insurers have the luxury of clinging to the past. Changes in the marketplace, in client expectations, and in distributor needs all require insurers to bring new or modified products to market quickly, and to mine their enterprise data for insights to improve underwriting and loss ratios.
For large insurers who have replaced components of their legacy systems, most report a qualitative difference in the way their business functions and their ability to address challenges, not just a quantitative difference in costs or speed.
This report, based on interviews with 10 multi-billion dollar insurers, examines these hidden costs and challenges. Insurers who are contemplating legacy replacement should ensure that they have understood and planned for the scope of business logic migration as preparation for these mission-critical modernization projects.