Legacy software systems are clunky, hard to work with, and not conducive to the agility and innovation that insurers need to stay competitive in today’s rapidly-changing environment.
Based on a recent report done by Salesforce, 75% of consumers expect companies to leverage new technologies for better interactions. To meet these needs, many insurers realize the benefits of upgrading their legacy insurance software to modernize operations and unlock more efficiencies.
The Challenges of Legacy Insurance Software
To illustrate the importance of upgrading software to remain competitive in the modern insurance marketplace, let’s review some of the main challenges of working on an outdated system:
Difficult to Scale
One of the main challenges of dealing with legacy software is that it can be difficult to scale. Plus, these systems are likely not equipped to address modern consumer demands or issues in the market. As such, keeping up with the industry’s changing landscape and expanding operations is challenging.
Inefficient
Legacy systems often lack the integration capabilities to work with one another, nonetheless newer, more advanced programs. Given the amount of data available to insurers today on consumer behaviors, financial metrics, and more, it’s essential that their software systems can communicate for more accurate underwriting, efficient claims processing, and more streamlined workflows – which siloed legacy programs cannot achieve.
Higher Costs
The older a legacy system gets, the more costly it becomes to maintain. As a program becomes obsolete, less support is available for any issues that may arise, which could lead to expensive replacement costs and repairs. These systems also keep organizations inefficient and harm their profitability the longer they remain in place.
The Benefits of Modern Insurance Software
Insurers can enjoy plenty of benefits by implementing modern, cutting-edge insurance solutions:
Streamlined Workflows with Automation
Modern insurance software can improve efficiency and streamline workflows. Advanced programs allow insurers to use automation, optimizing repetitive workflows so workers can focus on more strategic tasks.
Easier Integration with Other Programs
Today’s best software integrates seamlessly with other programs and existing solutions. This means insurers can easily access all essential data from one central location, optimizing their efficiency and helping them offer a more streamlined policyholder experience.
Scalability
Another critical function of modern programs is that they make it easier to scale. They tend to be more adaptable, flexible, and customizable than legacy systems, meaning insurers can personalize the software to fit their evolving needs as they grow.
How to Choose the Right Insurance Software
As an insurer decides to take the leap and upgrade their outdated software, they should consider the following:
Assess Current & Future Needs
To start, insurers should identify their current pain points and needs and look ahead to ensure that the program will fit their future objectives as they scale. This means assessing the specific functionalities and solutions they need, like automated claims processing, underwriting assistance, and more.
Evaluate Vendor Expertise & Reputation
At this stage, it’s critical to carefully evaluate the expertise and reputation of any potential vendor. Transitioning to a new software system can be a big undertaking, so insurers should know they’re in good hands. Vendors with a proven track record of successfully implementing software solutions for similar organizations should be at the top of the list. At Insuresoft, we’re extremely proud of our 100% implementation success record.
Consider Integration Capabilities with Current Systems
It’s essential that any new system can integrate well with existing platforms. Even if an insurer upgrades some of its technology systems, some programs will likely remain or may already be upgraded. As such, they’ll need to ensure the programs are compatible to achieve better efficiencies and streamlined workflows.
Modernize Your Operations with Insuresoft
Insuresoft’s software solutions offer expert precision for those in the P&C insurance industry. Our Diamond platform is an all-in-one solution that provides mission-critical core systems that boost efficiency and help insurers stay competitive in today’s increasingly complex industry.
Combining policy processing, digital engagement, and intelligent data, Diamond gives insurers what they need to stay ahead of the curve and become well-equipped to succeed in the modern marketplace. With a 100% implementation success rate, we know what insurers need to take their operations to the next level.
Contact us today to see how the Diamond Platform can help you modernize your back-office workflows for the digital age.
