Insurance is a complex industry, with its own unique language, systems, and processes. It’s partly because of this complexity that digitisation has been slow to take hold, and why many insurance companies and MGAs have been reluctant to update their legacy software and IT systems. Doing so can seem prohibitively complicated, time-consuming, not to mention costly.
But as the world becomes more digital, as competition increases, and customers demand more from their insurance cover, the need to update legacy systems is becoming critical. Furthermore, with no-code solutions, making the transition doesn’t need to be as daunting as it might initially seem.
If you’re in the process of reviewing your legacy software, and considering an update, here are the big issues you should be looking out for:
Too many manual processes
Legacy systems have usually been bolted together over several years, which means that integration is patchy, with gaps in what is and isn’t covered by the system. Consequently, your team ends up filling the gaps by copying and exporting documents, swapping between systems, and re-keying information. Our research found that underwriters can waste approximately three hours performing manual admin tasks; time which could be spent doing higher-value jobs to support business growth. So, if you find your team spending too much time on tasks that are draining their time, energy, and morale, then it is most likely time for an update.
Lack of flexibility to adapt and grow
We live in a fast-moving world, and insurance businesses and MGAs need the flexibility to pivot, launch new products, adapt to changing circumstances, and scale their systems. However, the rigidity and inflexibility of legacy systems can prevent these changes from happening. Outdated technology stacks aren’t easily updated, don’t integrate well with newer applications, and don’t enable processes to be streamlined. So, if you find yourself wondering how your current IT systems will support your growth ambitions, it’s probably time to find a new solution.
Lack of visibility of your operations
Data is vital to running any successful business today, and companies that collate and leverage their data successfully are at a huge advantage. It’s no different for insurance businesses, which need data for accurate underwriting, pricing, tracking claims and services, plus managing accounting processes, and reporting back to capacity providers and other stakeholders.
But if you’re over-reliant on legacy software then maximising data becomes virtually impossible, hindered by siloes, a lack of consistency, plus errors from manual processes. Modern systems remove all these issues by collecting and collating data and providing reports automatically. They can even use APIs to draw data from external sources, giving you an unprecedented view of what is going on, not only in your business, but in the wider industry as well.
Poor customer experience
Insurance customers today expect a personalised, seamless digital journey, clear communication, and timely, accurate responses, or they won’t hesitate to go elsewhere. But if you’re relying on legacy software, providing the service that customers expect is likely to become increasingly difficult.
With the latest technology, insurance businesses can personalise the customer journey, while using AI to streamline and automate the onboarding and claims process. New systems also enable companies to integrate a range of customer communication channels, as well as online portals, giving clients a variety of options for purchasing, making claims, and staying up to date with their insurance cover.
Clunky partner channels
Capacity and distribution partners are vital for running a successful insurance business. But if your partners can’t easily access the information that they need from your legacy systems, then it could put the future relationship in jeopardy. For example, do you have a comprehensive policy administration system in place? Can they access accurate pricing without speaking to a member of your team? And are you able to access data and reports on performance, commission rates, and claims? If not, then it’s time for a system that streamlines your partner relationships.
Invest now and reap the rewards
Reviewing and updating technology can seem like a laborious task when you want to focus your energies on running of your business. But, if your company is suffering from all or any of the above issues, putting the time in now will be more than worth it to drive improved customer satisfaction, employee engagement, and ultimately business growth.
Plus, with the latest no-code software solutions like Insly, updating legacy software doesn’t need to be a long, drawn-out process. All our software modules are tailor-made for the needs of insurance businesses and MGAs, spanning the entire value chain, from underwriting to claims, accounting and reporting. So, you don’t need to involve developers, and everything can be up and running in a matter of weeks – or even faster.
If you would like to find out more about how Insly’s low-code insurance software can enhance operations at your MGA or insurance company, contact us to book a demo now.
