Celent Model Insurer 2017: Case Studies in Legacy and Ecosystem Transformation

by Nicolas Michellod, April 4, 2017
Case Studies
Global

Abstract

Celent Model Insurer 2017: Case Studies in Legacy and Ecosystem Transformation

The vision for Celent’s Model Insurer research is to try to answer an apparently simple question: “What would it look like for an insurer to do everything right with today’s technology?” Three examples of successful legacy transformation projects are detailed to illustrate the challenges of such initiatives.

Unlike other IT initiatives, replacing or modernizing a legacy system is always something insurers have to think of when defining their projects’ agenda

Celent’s approach is to evaluate, at a high level, key best practices in the implementation and use of technology that a “Model Insurer” would use. The nominated insurers that display the most successful use of the key best practices within theme categories like legacy transformation are named Model Insurers.

While this report does not present an exhaustive list of best practices or expected results, Celent has identified several common best practices such as a use of industry standards, optimization of infrastructure, positioning for future reuse, automation, STP, and system integration as being integral to the success of an IT project.

"For the foreseeable future, legacy modernization will continue to be a central challenge for insurers' IT groups, operational units, and senior executives," commented Nicolas Michellod, Senior Analyst in Celent's Insurance practice. "Modernizing core legacy systems is easier to think about than to do."

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Model Insurer Overview

3

 

Model Insurer Themes

3

 

About this Report

6

 

Summary of Model Insurer Award Winning Initiatives

7

Common Best Practices and Results

10

 

IT Best Practices

11

 

Measurable Business Results

14

Legacy and Ecosystem Transformation and Its Impact on the Insurance Industry

17

 

A Work in Progress

17

 

Legacy and Ecosystem Transformation Benefits

17

 

Introducing the Award Winners’ Profiles

18

Republic Indemnity: Workers Compensation Policy Administration System Replacement

19

 

Opportunity

19

 

Solution

20

 

Delivery/Implementation/Project

20

 

Results

21

ERS: Full System and Infrastructure Replatforming

22

 

Opportunity

22

 

Solution

22

 

Delivery/Implementation/Project

23

 

Results

24

Insurance Corporation of British Columbia: Improving Efficiency Through a Major Legacy Transformation

25

 

Opportunity

25

 

Solution

26

 

Delivery/Implementation/Project

26

 

Results

27

Conclusion

28

 

Opportunity Identification

29

 

Implementation

29

Leveraging Celent’s Expertise

31

 

Support for Financial Institutions

31

 

Support for Vendors

31

Related Celent Research

32

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