FAST-TRACK TRANSFORMATION: HOW STANDARD SOFTWARE IS REMODELLING INSURER CORE SYSTEMS Insurance companies can benefit a lot from adopting the most modern insurtech solutions that are designed to increase their efficiency and save money by automating numerous business processes. Relying on digital technology to develop products, process claims and provide satisfying customer experience will result in improved sales and customer retention, increased operations productivity, and reduced IT costs. However, adopting a new technology means overhauling the core system and transforming the overall business model. This is a very sensitive process that can go wrong if you choose the wrong technology or procedure. In this article, we will examine the 3 most common approaches to modernize insurance business process. Each of these 3 approaches has its pros and cons, choosing the right approach that suits your organization is critical in successful digital transformation in the insurance industry. Insurer Legacy system modernization means relocating or migrating the core system of an insurer to a better, secure, and modern configuration. This is done to streamline business operations and to create better and new business opportunities. Insurance organization with the well-maintained and stable system but still use outdated technologies might want to choose this path. But often, IT systems that use outdated technologies will be having very limited options to modernize. If the architecture of the existing system is incapable of supporting the latest digital technologies, organizations might want to consider the “refactoring” method which involves changing the systems internal architecture without modifying its functionality. Building a proprietary platform involves more risks in terms of cost and usability. This approach is advisable to organizations that don’t rely on a legacy system or if the legacy system is incapable of any type of modernization. Creating a proprietary platform enables organizations to have a system architecture that fits their unique requirements and seamlessly integrates with other software used by the organization. Some organizations seem to take this path when they need a highly unique system functionalities that are not readily available in the market or cannot be implemented using their legacy system. Many insurers are increasingly looking at reinventing and remodelling their core systems by purchasing standard software packages. This is perfect for those types of organizations that want rapid solutions/packages at a lesser cost along with easier implementation features. This has several advantages and most of these packages come with ready-made functionalities that perfectly fit into the insurer budget and requirements. Insurance Industry. 1.3K Digital Technology 1.9K

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