Discarding Outdated Legacy System: Facilitating Core Modernization to Boost Efficiency
Overview.
In the digital era, the Insurance sector cannot rely on decades-old technologies. That’s why the industry is readily embracing core modernization to reap a variety of benefits, including operational efficiency and improved customer service delivery. Our client, a privately owned specialty insurer, was looking for a reliable partner who could help them move to a cloud-based SaaS solution. The leading insurance company offers a wide range of property and casualty insurance products and surety bonds to meet the special needs of individuals and businesses. Their competencies lie in identifying special risks associated with the business and the insurer addresses the problem with unique product solutions. Though our client aspired to scale up their business at a rapid pace in newer states, their moldy system was behind the curve to compete in this tech-savvy era. Coforge solved the issue with a strategic plan.
Unregulated operational costs due to outdated system
Inadequate system to bring out the required organizational & process modifications
Agents and brokers were burdened with operating multiple systems which was translating to low “Submission to Conversion” ratio for quotes
Launching new products and expanding into new states was taking forever
All these challenges were dragging down their growth rate. Our client was looking for a reliable partner who could build the blueprint to seamlessly move them to a cloud-based SaaS solution. In addition, the client wanted to get things off the ground adhering to the timeframes.
Solution
After assessing the client’s challenges, the Coforge team maneuvered a strategic plan. It created a dedicated team with unique expertise on both – Legacy Policy Administration and Servicing (PAS) Systems and cutting-edge COTS (commercial-off-the-shelf) products including Duck Creek.
To carry out the core platform modernization, Coforge participated in a joint exercise with the client in the envisioning phase. It helped in identifying the platform of choice to digitize client’s cellared business and IT systems.
A product configurability feature was offered to normalize product offerings. It enabled insurers to launch products in no time and expand their business in newer markets quickly.
To explore newer markets with advanced products, scalable Uniform Standards Platforms were put into practice.
The Impact
Quote processing time drastically reduced from 3 days to less than 15 minutes.
In a brief span of 18 months, major lines of business were launched in 50 states.
Two new products – General Liability and Excess Liability were launched on the leading-edge Duck Creek cloud SaaS platform. All this was executed in a record-breaking time and is still considered the fastest and most seamless implementation done by any SI (System Integrator) in the entire history of Duck Creek.
$64Mn in direct written premium was collected in less than nine months after the launch of two new lines of business.
$1.1 Million of total cost of ownership (TCO) savings within one year of deploying major legacy systems.
In the competitive market, insurance companies cannot survive with the old legacy system. To support new digital services, the sector is fastly adopting core modernization. However, the entire process comes with multiple roadblocks for which insurance companies need an experienced partner. If you are considering core modernization for your business, Coforge can help you out. Contact us and expect an instant call back from our team.
