As if legacy core systems were not enough of a challenge Aly Dhalla adds two more creating the triple-legacy problem:-

  1. Legacy systems 
  2. Legacy processes
  3. Legacy thinking

Dhalla is right to say that mindset is the real issue as there are answers to these three challenges. To exploit these answers insurers must have the right : -

  1. Leadership
  2. Culture
  3. Vision
  4. Goals
  5. Strategic Plans 
  6. Resources.

Mindset must embrace all these factors across the whole enterprise. Top to bottom, across all teams and departments, diagonally, informally and formally. 

Open minds to consider why things must change and why various options must be chosen. Setting the criteria to meet the goals that ensure the vision is realised.

 Dhalla usefully points out that if a customer focus is to be implemented technology is not a sliver bullet. Customers, even smartphone addicted Millennials, want ready access to human empathy and support. They do not always want anonymous self-service applications.

See "Balancing Claims Automation and Empathy".

So let's say you have items 1 to 6 ticked; do you have the mindset to tackle the triple-legacy problem?

My experience is that all too often the answer is no! On what evidence you might ask. Well here is a typical example.

Is it not obvious that even f you are constrained by legacy systems you can, without replacing them or incurring integration costs and delay, save £2,500 per subsidence claim that you a least seriously investigate? Even with just 1,000 claims a year that is an annual saving of £2,500,000!

Wouldn't you at least investigate, speak to an insurer that has achieved this saving? With such a referral wouldn't you at least consider spending £25,000 on a three month rigorous POC measuring the results against business as usual? 

Well, let me tell you- too many Heads of Claims, Claims Directors, Chief Transformation Officers are ignoring this proven benefit. 

Is that mindset or not? Fear of the future? Fear to recruit digital natives? Fear of the CEO? The wrong mindset across the organisation?

I can go on to describe similar situations where there is not the right mindset to think differently. Think laterally. Think.

There are enough challenges in business without adding to them by ignoring the future. Ignoring proven improvements within grasp. Ignoring the danger of some other insurer grasping the nettle and leaving you behind.

If you have stayed with me so far you had best look at some of the other measurable benefits you are missing.

See "Are your digital claims goals ambitious enough?"

And finally an answer to the triple-legacy challenge.