Large, global insurers are taking on the processes
of core system replacement, portfolio rationalisation, and infrastructure
consolidation. Simplification of the application landscape has forced many
insurers to come to terms with the challenges posed by their core legacy
systems.
Addressing the demands of customers and producers is
a high priority for all insurers today. In a new report, Simplifying
the Insurance Application Landscape, Celent looks at the approaches
being undertaken by large insurers on both sides of the Atlantic. Insurers
typically have a myriad of front and back office systems and duplicating
processes to support different lines of business. This introduces
significant issues relating to the flexibility of IT. It also comes at a
high price.
“Simplification of the application landscape is
tricky,” says Catherine Stagg-Macey,
Celent senior analyst and author of the report. “It’s akin to changing
the wheels on a moving train. Without taking on this challenge, however,
insurers are facing the high IT costs involved in the duplication and
inefficiences of these application landscapes.’’
The task of simplifying the application landscape is
indeed a Herculean one. Many of the large insurers in Asia, Europe, and
North America have begun to take on this task. As they progress and begin
to reap the benefits, it will become imperative for those left behind to
tackle this challenge head on.
The 15 page report contains two tables and three
figures. A table
of contents is available online.
