The insurance landscape has changed drastically over the last few years. As Insurance thought leader Matteo Carbone states in his article: ‘The future of insurance is insurtech‘, the insurance sector has entered a phase of profound transformation. According to Carbone: “The amplitude of the digital transformation happening in the insurance industry is widespread and encompasses all of the phases of the insurance value chain, from underwriting to claims.” This requires a complete shift of IT processes and technologies that most established insurance companies still run their business on.
Carbone has developed a classification framework called Connected Insurance which represents a new paradigm for the insurance business, an approach that fits with the mainstream Gen C, where “C” means connectivity.
The question is how to enter this new paradigm when burdened with legacy systems, while competition is fierce and new insurtech companies are entering the market quickly.
When asking Carbone, he replied that he basically sees two possible scenarios for established insurers with legacy systems: they either cooperate with start-ups or they purchase new systems and migrate their applications. Either way, there’s no place for legacy systems in today’s insurtech landscape.
These legacy systems, however, contain business value. Many of the more or less standard packages have long been migrated to off the shelve applications. What’s left are business critical, in house developed applications. On the one hand they are the heart of the business but on the other hand they are a bottleneck for innovation. Inflexible, high maintenance and difficult to integrate with modern technologies. It seems like a daunting prospect.
What if there was an automated way to transform these applications while keeping their business value, in a way that does not interfere with business and has little to no impact on users? Sounds too good to be true? Check out a real customer experience at OTP Banka Croatia.