How many insurers have legacy core systems 15 years old? How many 25 years old? How many have 15 or more of these technology stacks inherited with each successive M&A? Too many.
"Stripe, a maker of payments software that has become one of Silicon Valley’s most highly valued private companies, estimates that developers spend about a third of their time on tech debt and a further 9% of it fixing bad code."
Tim Bradshaw FT Global Tech Correspondent 27 Nov 19
If a clean slate new software developer spends 41% of time this way how much does an insurer's team with legacy systems? Or, for that matter, those with modern but still complex insurance platforms.
No wonder so many digital transformation projects tackle small aspects of the business rather than the whole operation.
360Globalnet prides itself on solving the technical debt issue for insurers claims operations with its No Code Claims Management Software platform with no need to change the incumbent core system.
Two or three trained people in each claims operation can customise workflows, processes, customer journeys in their working language on their laptop. Just needs a logical mind, two days training to:
- Innovate
- Iterate
- Test and publish.
- For minor changes literally in minutes.
For more complex changes it can be hours or maximum a day or two. it will be internal compliance that might slow deployment down.
This has been proven time after time from smaller insurers to large global ones. Even with old legacy systems; 360Siteview is effectively a digital wrapper with integration to policy admin at start of claim and payments and reserving at cash settlement end.
Delights customers, empowers and motivates the claims team and collapses customers. Surely a key strategy for any insurer- for all claims, all perils and in all geographies.
Change these core systems out at a time in the future that fits budgets and technology strategy. Today central IT can rest assured there is no overhead on the core infrastructure. 360Siteview is hosted entirely on the insurer's single tenant org (plus sub-orgs for, say, brokers and supply chain partners) on Amazon AWS for digital claims management performance, security across the complete business. Auto, Home, Pet, Travel, Speciality, Commercial.
There is no need to have a siloed approach any more- the strategy should embrace improving
- Customer service
- Opex
- Indemnity spend
- Fraud
- Recoveries
- the whole business in fact.
It is practical to deploy end-to-end digital claims not just for one category like Auto, but all categories. In fact, if this is not done customers will rebel if a Home insurance claim is frustratingly analogue whilst the Auto claim process is more akin to fully online.
Now is the time for an overarching strategy for the whole claims business rather than than tinkering with bits of auto and bits of pet whilst the majority of claims remain very "business as usual".
Take up the challenge and try 360Globalnet
The term was coined in 1992 by US programmer Ward Cunningham. “Shipping first-time code is like going into debt,” he wrote. “A little debt speeds development so long as it is paid back promptly with a rewrite.” Wait too long to repay the debt, however, and the “interest” mounts up. If code is not refined and tidied up over the years, warned Cunningham, “entire engineering organisations can be brought to a standstill under the debt load”. Tech debt is the hidden force that holds back innovation, especially inside more established companies. It doesn’t matter if you are a swashbuckling chief executive such as Elon Musk or a pugnacious rule-breaker like Travis Kalanick — if your engineers can’t produce new code fast enough, you might as well be working at, well, a 150-year-old bank.
https://www.ft.com/content/d6822eb0-0fe0-11ea-a7e6-62bf4f9e548a
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