Home Business Info-Tech Research Group Publishes New Blueprint for Legacy System Upgrades

Info-Tech Research Group Publishes New Blueprint for Legacy System Upgrades

by Cedric Guzman

The insurance industry is facing a critical need to shift from outdated legacy systems to modern solutions in order to remain competitive in the current market, according to the latest research from Info-Tech Research Group. The report highlights the growing demand from customers for innovative and advanced solutions that many legacy systems cannot deliver, leading to customer dissatisfaction and loss of market share for insurers.

Legacy systems in use by insurance companies are complex, expensive to maintain, and burdened with outdated technology, such as hardware, software, and development practices. Additionally, there is a shortage of developers skilled in older programming languages, leading to increased reliance on third-party support or outsourcing. This combination of factors makes it urgent for insurance companies to transition to modern platforms that can meet the demands of today’s customers and the data-intensive needs of the future.

The reliance on legacy systems is not only costly but also poses risks to insurers. These systems can consume a significant portion of an organization’s budget, limiting resources for other important initiatives. Furthermore, they may lack the agility and efficiency needed for modern insurance products and services. Legacy systems also create data silos, hindering effective data-driven decision making and jeopardizing insurance companies’ growth and existence.

To address these challenges, Info-Tech Research Group recommends that insurance companies prioritize certain critical areas when upgrading their technology systems. These areas include improving business processes and services, ensuring speed to market for new products, mitigating the risks associated with legacy systems, increasing operational efficiency, and becoming more data-centric.

Modernizing technology within the insurance industry is not just about improving profitability and customer experience. It also paves the way for innovative growth through the application of modern technological solutions. Modern systems can expedite underwriting decisions and claims handling, automate processes, and help detect and prevent fraud. They are essential for insurance companies to stay competitive in the digital era.

The Insurance Core Systems Modernization blueprint from Info-Tech Research Group provides comprehensive guidance for IT leaders in the insurance industry on upgrading their legacy systems. It emphasizes the need for future-oriented technology investments and adapting to market shifts and evolving customer experiences.

In conclusion, the urgent need for insurance companies to shift from complex, costly legacy systems burdened with outdated technology to modern solutions is evident. By prioritizing areas such as business processes, speed to market, risk mitigation, increased efficiency, and data-centricity, insurance companies can gain a competitive edge in the ever-evolving and dynamic landscape of the industry. Modern systems not only improve profitability and customer experience but also pave the way for innovative growth and automation.

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