Modernizing Core
Legacy Systems
Adapting to the new normal
The insurance landscape is constantly evolving. And modern customers demand rapid, high-quality digital services in all areas of their lives, including insurance. Moreover, if a company fails to meet their expectations, they are ready to switch to competitors' services.
However, conventional legacy insurance infrastructure has failed to meet these demands. Today, most of the traditional environment comprises a variety of systems purpose-built for specific insurance products. The combination of different legacy systems, inconsistent processes, and rigid code is too inflexible and complicated to support the modern business strategies required to remain competitive.
Challenges Associated
With Legacy Systems in Insurance
Evolving customer needs
As more and more tech-savvy millennials join insurance programs, insurers must transform their engagement methods. In contrast to the previous generation of customers, millennials need responsive and efficient customer service through smartphones and digital platforms. Meeting these requirements and expectations requires considerable changes in traditional insurance companies, both in approach and organizational structures.
The inception of InsurTechs
InsurTechs are the primary reason behind the significant change in the competitive landscape. While InsurTechs provide insurance companies with the capabilities to provide services through partnerships, such capabilities also impact insurers’ traditional legacy systems.
Mergers and acquisitions in the insurance sector:
According to Deloitte’s 2021 Insurance M&A Outlook Report, M&A in the insurance sector remains an ongoing process due to Australian banks' divestment of non-core assets and continued global expansion by Asian insurers. Insurance companies are under pressure to preserve deal value for investors and other stakeholders during the post-merger integration phase, where incorporating the latest technology has historically been a challenge for many deals.
Why Do Companies Need to Work Toward Modernizing Legacy Systems in Insurance?
- There is no alternative: reluctance toward adoption means losing market share
- Modernizing Legacy Systems in Insurance allows faster time to market.
- Further advancement and maintenance of systems become less expensive.
- Allows for further collaboration with partners quickly and effortlessly.
- By adopting the latest technologies, insurance companies can increase their attractiveness on the job market for young talents.
Improve time-to-market:
Because of the competitive environment, insurance companies need to sustain their market position by offering new products. However, legacy systems make it challenging to offer new products due to their complex nature.
Reduce operating costs:
A lot of legacy environments are expensive in regards to both hardware and software
Ensure regulatory compliance:
Insurance companies' administration systems must comply with regulations and rules. But, there is a high cost involved in making them compliant.
Adapt latest technologies to offer better user experience:
In the modern world, it is essential to integrate administration systems with newer technologies. Unfortunately, legacy systems are notorious for limiting insurers’ need to adapt to newer technologies and limiting business growth.
Eicoretech’s Solution
Eicoretech collaboratively works with insurance companies to supply and implement transformation solutions, tools, and accelerators
- Robust and Proven Legacy Modernization Framework.
- Provides Insurers with a Competitive Advantage.
- Offers In-House Tools and Utilities to Facilitate Data Migration, Interface Remediation, Testing, and Development.
- Creates Opportunities for Future Growth.
- Minimizes Software Costs and Maximizes Profits.
- Minimizes External and Internal Security Breaches.
- Reduces the Gap Between Customer Expectations and Current Practices.
See why some of the world’s most trusted insurers rely on eicore to meet their digital needs.
Integrating Eicore was the biggest impact investment of anything we’ve done to date.
- COO at a Hong Kong-based Life Insurance company
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Eicore offers comprehensive software services and products for brokers, insurers, HMOs, insurance TPAs, self-funded schemes and retail users. Eicore’s health insurance claims management software is an end-to-end and client-focused software providing solutions for claims handling, delivering significant benefits to insurance organizations with its wide-ranging functionalities. The claims management software integrates seamlessly with the existing policy administration system and external entities, thus digitalizing the claim process and saving resources, operational cost, and time, increasing efficiency, and preventing fraud.