"In the last few years many top (re)insurance CEOs have been using words like “Innovation, Cutting-Edge, Big Data, AI, ML” during quarterly calls. But what really lies behind the hype is a graveyard of Mainframe, Cobol, VSAM, ISM solutions masked with newer front-end solutions. The underlying problems still exist even if they’re hidden. Not only do these graveyards limit actual progress, but they’re exponentially more costly and time-consuming to maintain. As seen in timeline below- antiquated programming languages result in antiquated capabilities. In 1988, IBM released a midrange server called the AS/400. When you see a “Green-Screen” (like the library used to have) know that these systems reside on the AS/400. This same system built 30 years ago is one that many (re)insurers still use today for all core functions including data storage. While the front-end may look 2018, the back-end is still 1988."
Marie-Christine Razaire Scouting Manager at State Farm® Labs on LinkedIn see Legacy Tech in Insurance
In addition to the advice given also look for a digital technology partner that already addresses this legacy challenge. When it comes to Digital Claims one leads the field, is global, scalable and proven in Europe, APAC and North America
References
FIVE SMART TIPS FOR SUCCESSFUL INSURTECH PARTNERSHIPS
Insurers’ Point of Digital Transformation Failure is Culture—Gartner at ACORD
Paris, London, Munich & global hot insurtech startups- what's in it for insurers?
According to Accenture, "around 80 percent of the insurance executives we canvassed reported that their organizations were using data to promote critical and automated decision-making. However, an estimated 97 percent of business decisions are made using data that the company’s own managers consider unreliable.”
https://www.linkedin.com/pulse/legacy-tech-insurance-marie-christine-razaire/
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