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Out With the Old (Legacy System), In With the New (for Better Policy Management)
By Team Focus
Despite significant advances in technology and the wealth of data available and ripe for advanced analytics tools, many carriers still rely on decades-old legacy systems for policy management. It's a costly conundrum. The way in which carriers manage their policies is at the center of their risk exposure and subsequently, their profitable growth. At the same time, a widely quoted study by PwC found that on average, 70% of a carrier's IT budget goes to maintaining their legacy system.
But legacy systems do more than just eat into a carrier's budget. They hold carriers back from modernizing and staying competitive, keeping them from tapping data that could help inform decisions and better assess risk. New and always-evolving industry regulations require constant changes to policies, putting additional pressure on old and inflexible systems. And integrations with new technologies? Forget it. With legacy systems, that endeavor is monumentally complex or altogether too difficult to even attempt.
New, updated policy management systems can easily address these challenges and position carriers for future success and compliance. So why are carriers still reluctant to invest in new systems that will support their goals and make them easier and more cost-effective to achieve?
