Many insurers are considering replacing their core system as their next big IT endeavor. Unfortunately, despite the best of intentions, this is a regressive move that will set them back—technologically speaking—by many years.
Executive SummaryInstead of replacing an old policy-oriented core system with another one, inviting cost overruns and IT exhaustion in carrier C-suites, Intellect SEEC CEO Pranav Pasricha says a better approach starts with a bridge from the old system that ultimately leads to a new breed of customer-centric core systems technology. A first step is to wrap the existing core with a digital front, he says.
Why? Despite enhancements, many modern core systems do not support big data, AI and machine learning capabilities—technologies that are becoming the new normal and are rapidly disrupting the insurance industry. In other words, a modern policy administration system is just an old PAS gift-wrapped in a new programming language. It does the same thing as its 40-year-old predecessor—taking into account the same amount of information and using the same set of processes. So, while a modern PAS can help make life a bit easier for the IT team, it doesn’t do much for the business.