Legacy Insurance Systems: The GoBots of Technology

A recent episode of The Goldbergs hit close to home. Not only did it remind me of my childhood as a 1980s ’tween, it struck me as relevant to how insurtech is shaking up the insurance industry today.

The Goldbergs, if the show isn’t on your viewing list, tells the tale of a 1980s Midwest family as seen through the eyes of Adam Goldberg, the youngest of three. Adam loves pop culture with all of his heart and soul. He is particularly fond of his toy collection, including some mint condition Transformers.

In this particular episode, Adam loses a bet – and loses his toy collection. After failing to secure the mint-condition Transformers from the parents of the boy Adam lost the bet to, his mother buys him replacement toys she thinks are just as good as the original: GoBots.

If you were a kid in the 1980s, you know GoBots were little more than Transformers knockoffs. Transformers were intricate and elegant robots that transmogrified into sleek racecars and roaring fighter jets. GoBots were clunky, featureless toys that vaguely resembled their sophisticated counterparts. And they were a letdown to every kid who received one.

Legacy systems: The GoBots of technology

In many ways, GoBots are like legacy insurance platforms. Rather than sleek and elegant, these platforms are siloed from one another and the outside world, impeding the launch of new products, inhibiting collaboration among lines of business and hindering delivery of the user experiences that today’s customers, agents and employees expect.

That can signal trouble in an industry that has leapt from “slow and steady wins the race” to “the fast and the furious” when it comes to technology adoption. More and more established insurers are watching insurtech startups rewrite the rules for risk assessment, policy creation and customer engagement.

A new way of thinking relies on the convergence of big data, telematics, machine learning, predictive analytics and the cloud into digitally delivered insurance products. Innovative startups and tech-fluent industry leaders alike are using technology to gain insights into customers’ needs and deliver the ease of use, transparency and accessibility customers enjoy in all their other online business relationships. Nearly one-third of customers already rely on insurtech solutions, according to Capgemini.

Too many insurers sit mesmerized as these startups fluidly transform the industry into something entirely new and different. A place were legacy systems, and the insurers who employ them, have a hard time keeping up with the change.

A platform for change

The OnBase content services platform by Hyland integrated with the Duck Creek Platform provides insurers with a property and casualty engine built for the new open world. Together, the two solutions help insurers achieve five primary objectives:

  • Extends the core – empowering workers to manage scanned paper documents, faxes, print streams, application files, electronic forms, web content, multimedia files and emails, all in the context of their familiar Duck Creek screens and business processes.
  • Simplifies information access and control – so that employees, agents and brokers spend less time looking for information and more time working with it.
  • Keeps information secure – applying multiple levels of protection, including advanced authentication and encryption, to safeguard data at rest, in use and in motion.
  • Speeds development of new products and processes – – with true codeless configuration so that non-technical line-of-business personnel can design or change products to meet evolving needs, create workflows that improve process efficiencies and generate reports that provide new insight.
  • Reduces IT costs and complexity – by enabling cloud-based delivery of SaaS that eliminates burdens of systems maintenance, security and upgrades, freeing up staff and resources for activities of more strategic value.

Companies that get it right stand to do more than just keep up with changing markets, but get ahead. In its 2016 Digital Quotient, McKinsey reported that insurers with strong digital cultures are increasing revenue 50 percent faster than others. Accenture says 35 percent of insurers that automated systems and processes reported cost reductions of more than 15 percent.

To learn more about how OnBase and Duck Creek can help you transform your insurance business, download A Platform for Change: Duck Creek and OnBase.

Cara McFarlane is Hyland’s sales enablement solution marketing manager. Her mission is to effectively position Hyland as the leading content services platform within financial services, insurance, government, higher education, and emerging markets by sharing best practices that accelerate organization’s digital strategy across their enterprise. Cara leverages her 19 years’ experience in the content and process automation software industry to help lead Hyland’s market vision and roadmap. She received a bachelor’s degree from the University of Northern Iowa.
Cara McFarlane

Cara McFarlane

Cara McFarlane is Hyland’s sales enablement solution marketing manager. Her mission is to effectively position Hyland as the leading content services platform within financial services, insurance, government, higher education, and... read more about: Cara McFarlane