The Importance of Updating Legacy Systems in the Insurance Industry
As the insurance industry continues to evolve towards digital-first, real-time products, insurers are facing the challenge of updating or replacing their legacy systems. According to a recent survey by RDT, a lack of automation and digital readiness is significantly affecting sector growth. While insurers are making notable progress, there is still work to be done.
Leveraging flexible and agile technology is crucial for insurers to provide customers with the best products and services. The potential benefits are immense, from improving efficiency in claims and simplifying customer journeys to offering more relevant products with more accurate pricing. However, past transformation projects have shown that updating the insurer platforms can be labour-intensive and costly.
Despite the challenges, insurers are making progress. More than half of industry participants (54%) are prioritising the implementation of low-code interfaces to automate customer journeys, while only a fifth (19%) are working on replacing legacy systems entirely. Additionally, over a third (36%) of insurers surveyed reported an increase in technology investment over the past year.
However, the RDT Tech Poll reveals that concerns about the pace and effectiveness of digital transformation within insurance remain prevalent among insurers and MGAs. The survey indicates that most insurers view the sector as lagging in digitalisation, with nearly a third (31%) of tech professionals at insurers and MGAs rating the current state of digital adoption as either poor or very poor. Only 3% consider the industry’s digital transformation as excellent.
It is essential for insurers to begin by asking the right questions about how to add more value for customers and enhance the claims experience. The emphasis should be on leveraging automation and data to drive valuable outcomes – the key is to be customer-focused, not just tech-focused.
At Riskwolf, we understand the importance of updating legacy systems and leveraging automation and data to drive valuable outcomes. Our unique real-time data and dynamic risk modelling enable insurers to build and operate parametric insurance at scale. With Riskwolf, insurers can turn real-time data into insurance, providing customers with the best products and services.
To learn more about how Riskwolf can help you update your legacy systems and leverage automation and data to drive valuable outcomes, get in touch with us today.
Source: Still Work To Do on Updating or Replacing Legacy Systems, Says RDT Survey