’til deAtH do you PArt
surviving a long-term
relationship with your
legacy systems
aboUt csc’s insUrance solUtions
CSC provides specialized application software and software services, business consulting, systems integration,
and business process and IT outsourcing to the global insurance industry.
The insurance industry is built upon predicting the future. Every day, carriers
calculate premiums based on probabilities of future events. But there’s one
thing that carriers are not always successful at predicting – the course of future
technology.
“Some of our clients are running business on systems that are 30 years old,” said
Rich Carreau, global chief technology officer for CSC’s Financial Services Group.
“Those legacy applications are invaluable assets. But what they offer insurers in
terms of institutional services, they cost them in speed and agility and refocusing
the business to top-line growth.”
No long-term relationship can be successful without a certain amount of
flexibility. So what do you do if your legacy systems are holding you back? There
are many options for policy administration, but there’s no single option that’s
right for all situations. And staying abreast of changes in technology is key to
understanding your options.
keep your back office current
CSC is no stranger to the need to keep the back office current. CSC’s outsourcing operations function like a large insurance company, processing more than 6.5
million policies.
“We use the same technology that we sell our clients,” Carreau said. “To stay
competitive, we’ve had to change strategies over time, so we know the importance
of applications modernization. And – this is key – we align ourselves with strategic
partners that can help us move for ward. Carriers should strongly consider doing the
same thing.”
So what is the best strategy for applications modernization?
Choose a Winning Strategy—or Maybe Several
From CSC’s perspective, there are four common strategies, and they’re not
mutually exclusive. Decisions should be made based upon where a system is in its
life cycle. At various points, you will need different strategies.
1. Replace—The first, and most obvious, option is to replace your legacy
systems with a new one—either in whole or in part. For some companies, this
might mean converting the old system to a new platform. But for others, this
could mean adding a new system for new business only and continuing to run
one or more legacy systems for existing business. Or, a carrier might choose to run
both systems for a couple of years, then convert the old one or outsource those
blocks of business.
“We use the same technology
that we sell our clients. to
stay competitive, we’ve had to
change strategies over time,
so we know the importance of
applications modernization.”
