LEGACY SYSTEM OVERHAUL: THREE CORE APPROACHES TO MODERNIZING INSURANCE TECHNOLOGY Insurance companies stand to gain significantly by adopting modern insurtech solutions, which enhance efficiency and cut costs by automating various business processes. Leveraging digital technology for product development, claims processing, and delivering an exceptional customer experience leads to improved sales, increased customer retention, higher operational productivity, and reduced IT expenses. However, embracing new technology requires a complete overhaul of core systems and a transformation of the overall business model. This is a delicate process that can backfire if the wrong technology or method is chosen. In this article, we will explore the three most common approaches to modernizing insurance business processes. Modernizing an insurer's legacy system involves migrating the core system to a more secure, efficient, and up-to-date configuration. This enhances business operations and opens up new opportunities. Insurance companies with well-maintained and stable systems but outdated technologies may opt for this path. However, IT systems using outdated technologies often have limited modernization options. If the existing system’s architecture cannot support modern digital technologies, organizations may need to consider the "refactoring" approach, which involves altering the internal architecture without changing its functionality. Building a proprietary platform carries more risks in terms of cost and usability. This method is recommended for companies that do not rely on legacy systems or have systems that cannot be modernized. Developing a proprietary platform allows organizations to design a system architecture tailored to their specific needs while ensuring seamless integration with other software in use. Some organizations choose this route when they require highly unique functionalities that are unavailable in the market or incompatible with their legacy systems. Digital Technologies 720 Modernization 6.6K

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