Customer Engagement

3 steps to modernise your insurance document systems

As other industries roil with technological disruption, it’s up to the insurance industry to stay one step ahead of the game. That means building new solutions that can allow for faster time-to-market, better consumer engagement and a more personal experience.

If you ask insurance executives about the state of the industry today, it’s not long before the word “modernisation” comes up. Many of their legacy systems are decades old and may still provide for the users’ needs — even though newer, more efficient technologies are now available.  But a lot of attempts to migrate legacy systems end up proving costly and complex.

One Gartner survey found that less than half (42 percent) of those projects meet the original budget and 82 percent take longer than expected.

That’s caused many insurance companies to sit on the sidelines, but most insurance executives know that’s not an option. According to the 17th Annual Global CEO Survey form PricewaterhouseCoopers, almost three-quarters (64 percent) believe that the inability to adapt to technological changes in the marketplace is a threat to growth.

So how can insurance companies migrate and modernise a legacy document composition system without increasing risk or breaking the bank? Here are three steps that can help:

1. Understand the Demands of the Modern Customer

The relationship between business and consumer has radically changed. Technology companies like Google and Amazon have led the way in creating personalised, individual experiences for each customer. In fact, PwC found that these tech companies have changed the customer experience so much that tens of millions of consumers said they would consider purchasing insurance directly from these non-insurance entities.

Modernising a legacy document composition system shouldn’t just cut costs and ensure that customer-facing communications comply with regulatory requirements and regional policies – it should improve customer satisfaction and offer new opportunities for brand messaging and accuracy.

A new system for insurance communications should pave the way for customer interactions for years to come.

2. Build and evaluate potential architecture

Insurance carriers have to carefully map out all legacy systems and processes before making a plan to migrate them. Once you have this detailed blueprint, you can start to evaluate vendors.

What will a modern insurance document system look like? Aside from traditional structured communications like bills and policy statements, the system should be able to create on-demand documents in real-time, allowing for interactive communications and the exponential growth of unstructured data. A system that can store that data for later use can also ensure that insurance companies will have access to all that information, so it can potentially be accessed and analysed in the future.

3. The phases of modernisation

There are five phases to document system legacy modernisation: extracting, converting, importing, testing and deploying. The vendor that you do choose to revamp your insurance document system should follow a step-by-step approach and an exact methodology that can accomplish this task without fail.

Since every source system is different, each one needs to be engineered for the document structure and logic that will work best.

Once the software vendor has been chosen, develop a formal modernisation plan that will help you transition off legacy hardware and software.

Maintaining speed

The most important thing that insurance companies have to do is to stay urgent during the process. Legacy modernisation can be a stressful and tedious task, but with the right vendor and the right system, much of that can be streamlined.

As other industries roil with technological disruption, it’s up to the insurance industry to stay one step ahead of the game. That means building new solutions that can allow for faster time-to-market, better consumer engagement and a more personal experience.

Ready to migrate your legacy system? Download our whitepaper about how you can fast track modernisation and deployment.

To learn more about migrating and modernising insurance legacy systems, watch our recent webinar with AM Best