{"id":11233,"date":"2022-01-18T19:09:34","date_gmt":"2022-01-19T01:09:34","guid":{"rendered":"https:\/\/threecloud.wpengine.com\/?p=11233"},"modified":"2023-09-19T15:40:50","modified_gmt":"2023-09-19T22:40:50","slug":"the-1-risk-in-modernizing-insurance-software-applications","status":"publish","type":"post","link":"https:\/\/3cloudsolutions.com\/resources\/the-1-risk-in-modernizing-insurance-software-applications\/","title":{"rendered":"The #1 Risk in Modernizing Insurance Software Applications"},"content":{"rendered":"

Throughout\u00a0a\u00a0decade in consulting, I\u2019ve had the opportunity to work with many partners in the insurance industry including, most recently,\u00a0<\/span>RGA<\/span><\/a>. Several\u00a0<\/span>of my colleagues at Polaris also have experience working on business-critical projects for insurance partners, or they\u2019ve had full-time development and IT roles at large insurance organizations.\u00a0<\/span><\/p>\n

In many cases, these partners turn to us for help modernizing their outdated, legacy systems.\u00a0They might face\u00a0changing expectations from customers\u00a0or\u00a0increasing pressure from competitors\u00a0and\u00a0<\/span>huge tech companies\u00a0entering the space<\/span><\/a>\u00a0for the first time,\u00a0or\u00a0all of the above. Either way,\u00a0they see the need to modernize\u00a0but need expert help to execute on time and\u00a0at\u00a0budget.\u00a0Below, I\u2019ll\u00a0share\u00a0some of our insights about why application modernization comes with its own considerations\u2013and risks\u2013for the insurance industry.\u00a0\u00a0\u202f<\/span>\u00a0<\/span><\/p>\n

What\u00a0Application\u00a0Modernization\u00a0Means\u00a0for Insurance<\/h2>\n

While business agility is a priority for executives and IT leaders across industries today, insurance companies face unique pressure for it. For starters, the insurance industry is fiercely competitive. In recent years, it\u2019s also being constantly reshaped by new technology, like\u00a0<\/span>data-collecting sensors<\/span><\/a>\u00a0in our homes and cars.\u00a0<\/span><\/p>\n

Insurance organizations are continually offering new products and features to entice prospective customers\u00a0and improve their analytics. App modernization\u00a0offers the\u00a0increased agility these organizations need if they plan to get ahead of their competition, or even just keep up.<\/span>\u00a0<\/span><\/p>\n

Additionally, insurance organizations ingest and manage a lot of data. App modernization can provide new ways of analyzing that data to provide insights and new data points, which in turn\u00a0can be used\u00a0to make more informed decisions and unlock hidden business value.\u00a0<\/span>\u00a0<\/span><\/p>\n

Insurance\u2019s #1 Risk During App Mod<\/h2>\n

In a\u00a0<\/span>recent post<\/span>, we outlined the three-step path to modernization that IT leaders in any industry should be prepared for. Insurance IT leaders have to tread with extra caution, however, because of the risk of these mistakes:<\/span>\u00a0<\/span><\/p>\n

    \n
  1. Missing the Mark<\/span><\/strong>
    \nMany app modernization projects\u00a0and\u00a0<\/span>dev approaches<\/span>\u00a0include some level of rearchitecting an application. With this, there\u2019s always the risk that\u00a0critical\u00a0business logic will be missed or incorrectly represented\u00a0in the new system.\u00a0According to a report by\u00a0<\/span>    PMI<\/span><\/a>, 31%\u00a0of IT projects will\u00a0fail to meet their original goals.\u00a0For something like premium processing software, this\u00a0means there\u2019s a very real\u00a0risk of losing money for the insurance company if\u00a0data is mishandled.<\/span>
    \n\u00a0<\/span><\/li>\n
  2. Causing Outages<\/span><\/strong>
    \nComing in at\u00a0a\u00a0close second,\u00a0insurance companies have a high\u00a0risk of outages.\u00a0We\u2019ve already established how\u00a0these\u00a0organizations ingest a lot of data, and how that\u2019s only increasing with new tracking and monitoring technology. They\u2019re also continuously processing that data into claims and premiums, at all times of the day.\u00a0Missing data can have serious impacts on the\u00a0core\u00a0business.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Given the risks, insurance companies can\u2019t afford\u00a0to fail outright\u00a0with their IT projects\u00a0or even experience\u00a0downtime while shifting to new code bases or infrastructure. Their path to application modernization has to happen in carefully planned stages, with mitigation strategies at each stage to ensure a smooth transition.\u00a0<\/span>\u00a0<\/span><\/p>\n

    Throughout\u00a0a\u00a0decade in consulting, I\u2019ve had the opportunity to work with many partners in the insurance…<\/p>\n","protected":false},"author":61,"featured_media":11481,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[292,264],"tags":[389],"class_list":["post-11233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-app-innovation","category-enterprise-apps","tag-app-mod","topics-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/comments?post=11233"}],"version-history":[{"count":0,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/posts\/11233\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/media\/11481"}],"wp:attachment":[{"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/media?parent=11233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/categories?post=11233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/3cloudsolutions.com\/wp-json\/wp\/v2\/tags?post=11233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

    Luckily, experienced partners like 3Cloud can help. We can coach teams on the leading <\/span>Agile<\/span>\u00a0practices that enable high performance during app modernization. We have the\u00a0<\/span>DevOps<\/span><\/a>\u00a0expertise to continuously integrate and deploy code into environments and focus on the quality and stability of the code.\u00a0Finally, with our\u00a0<\/span>app mod experience<\/span><\/a>\u00a0we can short-circuit the hard lessons\u00a0for our partners, avoid the major risk factors above,\u00a0and provide a sound strategy for modernizing their\u00a0software.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"