There is no doubt that replacement of core systems for insurers has been very popular over the past six years or so. With the advancements in technology enabling vendors to provide solutions that are configurable, and more easily maintained with “plug and play” technologies that can be upgraded by less technical resources, insurers are taking advantage and moving in to new lines of business and new territories, expanding their footprint. It allows many small and mid-size insurers to better compete with the leviathans who once staved off competition due to their enormous IT staffs.
But many of these insurers have been in business for scores of years, and have successfully relied on their older technology. Does the advancement in technology along with ubiquitous connectivity mean that the mainframes and older technology systems just have to go? Does just refacing the green screens with new web-based user interfaces mean that the carriers that do so are just procrastinating and putting off the inevitable?
A recent blog in Tech Digest posed that question to which I would reply, “Why? If it ain’t broke, don’t fix it.” With the horrible economy, many people who need a bigger house aren’t dumping the one they have and buying another, they simply add-on. The core systems within a carrier are very similar. If the system you have now works well for its use and if you want to expand in to new lines, you don’t need to rip out that old system and pay for an expensive funeral, just add-on and integrate. This will start your company down the path to more flexibility which can be supported by a system that is specifically designed to bring all your information into one place – Policy360 based on CRM.
Utilizing a system designed to bring data together from multiple sources allows you to keep your existing technology, leverage the capabilities of new systems, and present and manage that information in a much more accessible and user friendly manner.
Is plastic surgery on your legacy systems really just putting off the inevitable? Or is presenting a fresh look that sees into the future allowing you to keep costs down while expanding service and capabilities.