Software modernisation: a necessary boost for the insurance industry

In the digital era we live in, software modernisation has become vital to the transformation of organisations, especially in the insurance industry, traditionally perceived from the outside as not particularly groundbreaking when it comes to technology. However, this industry faces an important change driven by the need to adapt to the technological development and the clients and partners’ expectations, which are in constant evolution.

Software modernisation in the insurance industry is more than just a simple technological upgrade; it is a strategic investment that offers several tangible benefits. Here, we pinpoint some of the reasons why modernisation is vital to insurance companies.

Operational efficiency:

It allows insurance companies to optimise and automate their processes by integrating previously isolated systems and data, while having access to the information on service levels in real time and enabling the flexible calibration of their risk acceptance and claims management rules. Not only does this reduce operational costs, but it also enhances the pace and accuracy in the provision of services, which leads to a more efficient operation and more satisfied clients.

Risk management and compliance:

Due to the growing complexity of regulations, such as DORA and NIS2 standards, and the increase of cyber threats, insurance companies face significant challenges regarding risk management and regulatory compliance. Furthermore, obsolete or out of date systems usually do not have the required capacity to tackle these challenges. Their modernisation allows insurance companies to strengthen their cyber defences, deploy robust security measures and automate compliance procedures, ensuring the compliance with regulations in constant evolution.

Product and service innovation:

In order to stand out in a highly competitive market, insurance companies need to constantly innovate and offer distinctive products and services. Software modernisation provides insurance companies with the flexibility and agility required to develop and launch new products quickly and autonomously. Moreover, it enables a greater integration capacity with the company’s ecosystem and prepares it to leverage modern technological innovations, such as Cloud and GenAI, which can revolutionise the way insurance is delivered.

Improvement of the staff’s experience:

The use of new interfaces and the user experience of applications, brought forward by recent technologies, provide the company’s staff and users with a more efficient, stimulating, and integrated work experience, which increases their motivation and perception of the company’s commitment to innovation. Modernisation places the company on a high technological level with the potential to transform the way their staff will be working daily in the near future, contributing to their upskill as well as the company’s attractiveness in the market.

Data analysis:

Data play a key role in insurance, helping insurance companies better understand risks, establish a fair value of the premium and anticipate clients’ needs. Software modernisation allows insurance companies to efficiently assimilate, process and analyse high volumes of data, using advanced techniques of data analysis. This promotes a more informed decision making process, which leads to better products, a more fitting pricing, and a more efficient risk management.

In conclusion, modernisation is vital to insurance companies that wish to remain competitive in a constantly evolving environment. By investing in their systems, insurance companies can enhance their operational efficiency, strengthen their cyber security and resiliency, boost their innovation, and increase their business value. Ultimately, they will be ready to thrive in this industry in constant transformation.