There’s no way around it — updating your core system is a major effort in terms of time, resources, and expense. But it may cost you more — in more ways than one — to maintain your legacy system than to modernize to a more practical and forward-facing solution. Legacy systems can be responsible for increasing your budget up to 15% annually for maintenance costs alone.
Many businesses are already seeking out dynamic, accessible, versatile core systems that will take them far into the future. A recent Origami Risk study reported that an overwhelming 90% of insurance management professionals are undergoing modernization of their primary core platform within the next five years. Now, insurers are expecting more from their platform than just storage and computing functions; they’re expanding their cloud usage to automate processes and broadening capabilities to include artificial intelligence and actionable data analytics.
The question is: What system do you upgrade to? Taking the time to truly understand the benefits and drawbacks of one system over another will have a lasting impact on the success, adaptability, and effectiveness of your business for years to come. Here are some helpful tips to get you started.
Whether you’re considering keeping your existing system or gearing up to make a change, confirm your solution delivers across these three areas:
There are four major platform architectures to choose from. Here’s an overview of each and a look at which will serve you best in the long run.
A cloud SaaS system with low code/no code technology is the way to get up and running quickly and it enables you to make swift changes in real time. These systems are easily tailored to your business’ specific needs because they don’t require labor-intensive IT resources to execute. If you’re worried a new core system could take years to implement, going with a low code/no code solution can usually get you to market in just months instead. These systems also make it possible to launch new products faster and even enable your users to make certain changes themselves.
It’s important to have a positive, productive, collaborative relationship with your core system vendor. When you’re sizing up the system offerings, make sure to size up the cultural fit, too.
Ask yourself:
It’s equally important to keep in mind what you don’t want to implement in your new or updated core system. Here are the big red flags to watch out for:
Systems that aren’t designed with flexibility and agility will have a detrimental impact on your business’ ability to grow and deliver seamless customer experiences. Here’s why:
In a time where change is constant, a rigid platform is not equipped to provide your business with the tools it needs to thrive.
Multiple factors can cause your tech project to fail, which is why business engagement during transformational projects is key for your project’s success. All core insurance transformations require internal stakeholders, IT departments, and vendors to be on the same page to avoid misalignment of your project’s goals, timeline, and/or budget.
Avoid implementation failures by having a clearly defined plan of action to properly manage issues that may arise during your project.
It’s crucial to look to the future when you’re considering an upgrade to your core system. A partner that lacks a propensity for innovation, forward movement, and proactiveness will make your platform feel outdated within a few short years. With 10+ years as the average time spent with a core system, ensure your new platform checks off the boxes for today and tomorrow.
Contact Origami to learn more about their integrated SaaS solutions and request a custom demo!