Much of the insurance industry is stuck in its ways when it comes to their legacy systems and innovation. However, investments in new technology, innovation labs, rapid prototyping and user testing, as well as an adoption of agile practices are increasing as the world moves further into a digital landscape.
In the startup era, there are an increasing number of plucky InsurTech startups popping up and digitally disrupting the way consumers and businesses look for protection. Players in the mobile insurance space can be seen above. Opportunities for businesses that are leveraging data, automation, connected devices and personalization to deliver simpler and smarter user experiences certainly exist, but the majority of the insurance industry appears to be complacent.
In the age of cybercrime, this is obviously a risky attitude to take. Many insurance companies still feel that the post-purchase engagement with a customer should only be at claim, adjustment or renewal. They, too, are comfortable that their line of business or specific niche is safe from disruption.
Insurance companies need to then give their target consumer what they want in the form of efficient, easy-to-use digital solutions. Unfortunately, many insurance companies feel that by innovating digitally, they will be forced to completely overhaul their legacy IT systems and for many insurers, that is not an option. The complex convolution of the insurance industry’s legacy systems can be perplexing. Once industry norms have been standardized, the issue is that it is difficult to change them.
However, insurance companies need to understand that by using outdated legacy systems, they are causing their businesses harm, as legacy systems hamper the business’ advancement in an increasingly competitive market.
Delivering modern user experiences and best protecting your customers’ private data oftentimes does not involve a complete system change, though. There are a number of methods for modernizing legacy systems and a number of alternatives to the complete system overhaul exist.
It is crucial that the IT systems of the insurance industry are modernized and prepared to alleviate problems posed by outdated legacy systems. Modernization not only benefits customers, but insurers, as well.
Morphis’ process of modernization involves a proprietary toolset that deals with multiple legacy languages and enables modernization to a Java or .NET environment. With our expertise, insurers will be able to not only protect information but provide enhanced user experiences that will both sustain their current customer base and attract a new generation of customers.