Insurance Legacy System Transformation With Endava, FintechOS, Branch, Hey Driver & BlueConic

Insurance has a reputation for being stuck in its ways. For more than 50 years, the insurance system has not changed. In recent years, however, the rise of digital solutions and insurtech, catalyzed by the pandemic, has created a movement to challenge traditional insurance assumptions.

of the month Fintech Timeswe identified the challenges insurtechs may face in abandoning legacy systems. But today we will hear about the benefits of legacy systems.

“You have better control”

Traditional systems provide some comfort. Jay Chitnis Senior Business Consultant for Software Provider Endava.

Legacy is usually bug-free because it has been squashed and routed through years of deployment and code research. The trick is to pluck off the smooth part you leave behind and extract the infected part.

“From a virus point of view, there is an argument that legacy is relatively safe because people no longer write viruses against old code. It definitely doesn’t mean it’s as secure as it is, in fact it’s quite the opposite.

A key element of legacy is having an experienced team behind the system. This experience is invaluable and can be leveraged during transitions and within new systems, especially during construction and maintenance. It is important.

Platform control is also a key element of legacy where newer SaaS-based offerings do not offer the same amount of control. will reach.

“They offer the best of both worlds”

Modernization of legacy systems is often a large and costly project with high risk, so companies have little incentive to undertake such large-scale infrastructure overhauls. Theodor BridalsCEO & Co-Founder Fintech enablers for banks and insurance companies Fintech OS.

The biggest perk is related to the if it aint broke, dont fix it mentality that many organizations have. Ending up with the same functionality that exists today is not seen as valuable by many organizations. Instead, they are looking for alternatives that deliver new value faster, with lower risk and cost. increase.

There are many organizations that see the benefits of maintaining legacy systems because they are proven to work, but limit their scope to only what they do best. to process transactions at high speed.

“This concept of reducing legacy to fundamentals is described in various terms in the industry, such as ‘hollowing out the core’ and creating a ‘lean core.’ means to apply a “zero change” policy to This avoids the problems associated with extensive customization of legacy systems.

It is common to put layers around legacy platforms so that they can continue to be used by other systems. While we can focus on driving innovation with other platforms around them, we get the best of both worlds: less disruption and more innovation capacity.

“Few perks”

Joe Emison Co-founder and CTO of a full-stack insurance company branch I don’t get too blinded when it comes to legacy systems.

Frankly, legacy systems don’t have many perks, he says. I believe legacy systems are enforcing past limitations and preventing organizations from delivering the experience they wanted.

Traditional systems are hard to use and can’t do simple things like combine home insurance and car insurance into one transaction.

Traditional systems werent built to handle automated claims, yet 87% of claimants said their claims experience directly influenced whether they would switch providers. Despite that.

Some companies defend legacy systems as a place where the best knowledge of the past is stored, but the reality is that when these systems were built, buying and using insurance was very difficult and frustrating. It was something to do.

We would all be happier if the processes and knowledge built into these systems were lost forever.

his view is Paul Moss Founder of auto insurance company Hey Driverwho saysLegacy systems are obsolete compared to the systems and technologies available today.

There really is no perk that is not available with new technology. Over the past decade, technology has led the way in business systems/methodologies and 360 best practices.

I really look at the efficiency, communication, accountability, and holistic view of the technical team and try to find ways to integrate them into other aspects or departments within the company.

‘We need to move forward at our best’

for Nicky Peters Principal Customer Success Manager, Professional Customer Data Platform blue conic, Replacing a system is easy, but adapting to a new system so that you can work in the most efficient and effective way can be a difficult task.

When tackling technology modernization, it is always important to consider what features and capabilities you really need from your legacy system to your new system.

Investing in two systems is not worth it, so we need to replace our existing technology with something more efficient, powerful, scalable and easy to use.

We recommend shadow running or trialling new systems alongside older technology before phasing out older technology to avoid gaps in processes and data.

If you end up sticking with a legacy system just for the perks, you may not have chosen the right technology to replace it after all.