Guide to modernizing insurance
Considering a technology upgrade? This legacy assessment provides answers.
As they try to stand out in a hypercompetitive market, insurance carriers focus on customer satisfaction, costs savings and efficiency. Too often, though, they rely on legacy systems that deliver inconsistent customer experiences and make it difficult to create personalized communications.
According to research by PwC, insurers spend about 70% of their IT budgets on maintaining legacy systems. Other estimates have the legacy maintenance spend as high as 75%.
Antiquated systems are inefficient and costly to maintain, and they simply aren’t able to support the capabilities required for success in the foreseeable future.
If your IT systems are a decade old and increasingly causing setbacks, it’s time to consider modernizing your technology solutions — for the sake of your customers and your staff.
Modernization is recognized as a strategic solution to navigating the challenges of outdated legacy systems. One that promises huge returns — resource optimization, higher scalability, personalization, quicker response times and more efficient service to customers.
But first, it’s time for an assessment. Before making the decision to modernize IT systems, insurers need to evaluate their current systems to truly understand what technology solutions will resolve legacy issues and where they can make the most impact.
The integration between OnBase and Hyland RPA has helped us design the perfect claims and new business system. There’s no way we could have achieved these results without both of those assets.”
— Kyle Swearingen, Vice President of Development, Funeral Directors Life
Legacy assessment checklist
There are a number of factors that should be considered when undertaking a system assessment — the age of the hardware/software, its interoperability with claims and policy systems, whether it supports changes in the business processes model, the frequency of hardware failures and crashes, and, generally, its overall performance.
Here is a checklist of questions to ask yourself to gain a complete and fundamental understanding of your existing systems:
- Is your existing system able to accept and process multiple data formats from various types of applications and third-party systems?
- Can your system accurately classify, extract and validate all document formats?
- Are you able to connect your current system with new applications without having to deal with disparate systems?
- Are you able to gain a complete view of information and real-time access to that information whenever you need it?
- How successful is your organization at managing case files from start to finish? Are you able to track and improve your time to resolution?
- How quickly and accurately does your system process the increased volumes of data that your organization receives?
- How much investment or expense is tied to the maintenance and support of your existing legacy systems?
- Does your existing system offer flexible deployment options?
- Does your current system offer scalable, highly performant architecture that will meet future needs?
Your answers should provide a clear perspective of whether modernizing your legacy system is a necessity for your agency.
Four modern tech fixes for legacy issues
Technology solutions can revolutionize efficiency, accessibility and effectiveness for all users. That’s why insurers must leverage every advantage that these solutions have to offer.
Intelligent content capture
Insurers can utilize artificial intelligence (AI) to ingest incoming information, no matter its source, and make it accessible and usable.
Case management
Leverage tools like rapid application development (RAD) to tailor solutions to your needs with configurable point-and-click capabilities. You can also develop solutions that scale and shift with evolving business and customer needs on one platform — and extend it across departments for agility and effectiveness.
Process automation
Gain complete visibility into your processes from start to finish with workflow automation. Intelligent automation improves processes by connecting information across core systems and workflows, freeing up staff to focus on more strategic work.
Cloud and shared services
Migrating to a modern cloud-based platform with a shared services model can help insurers centralize siloed IT solutions on a single platform that provides secure content storage and collaboration while ensuring ownership and control. Plus, being hosted in the cloud means information is accessible from anywhere with real-time data, improving efficiency and transparency.
15
Number of solutions aYo considered before selecting Hyland to automate claims processing
20,000
Hours in manual processes that Funeral Directors Life saved over two years with end-to-end claims automation
$15 million
Amount Funeral Directors Life’s claims volume increased in the two-year period
Multiple capabilities in one solution
Although transforming legacy IT systems into a modern and agile system can be challenging, it’s imperative for insurers to meet the demands of today’s savvy digital customers.
Intelligent content solutions are capable of delivering a modern, robust and holistic solution. With its diverse range of capabilities, a content services solution will be instrumental in your modernization initiatives while offering scalability and sustainability for the future.
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