Modernizing a legacy system is one of the largest IT investments an insurer will make. How does an insurer choose the best way to do this?
This report describes the following four legacy modernization strategies:
- Replace with a commercial off the shelf (COTS) package.
- Replace with a completely rewritten system.
- Wrap and extend using rules, BPM, document management, portals, etc.
- Continuous improvement: annual planned improvements.
The report also provides a sequential set of knockout questions which insurers should ask and then answer as a first step in choosing a strategy.
“Celent recommends that other insurers follow a more sequential analysis: understanding their own kinds and levels of pain and benefits, answering the knockout questions, and analyzing the remaining strategic options in more detail,” says Donald Light, research director with Celent’s Insurance practice and author of the report.
