MGA : TPA
CLOUD-NATIVE PLATFORMS OFFER A MULTITUDE OF BENEFITS FOR INSURANCE ORGANISATIONS , HENCE THE LEAP IN ADOPTION IN RECENT YEARS . HERE ’ S THE LOWDOWN ...
The business case against legacy technology is fairly plain to see . Not only do legacy systems hold insurers back from offering the type of agile , dynamic customer experience that insureds expect , they ’ re also exorbitantly expensive to maintain . For those that remain on legacy technology , it ’ s not uncommon for insurers to spend up to 70-80 % of their IT budget on continual maintenance , with the cost of upgrading an entire organisation from one version to another sometimes reaching seven figures .
Clearly , cloud-native technology has the edge here – both in the ease of keeping systems updated , but in terms of price , too . But what does adoption look like , and how is cloud migration working in practice to transform insurance organisations ?
What challenges do insurers face ? In part , this switch was accelerated by the COVID-19 pandemic , as Gartner Senior Principal Analyst Brandon Medford explains : “ Organisations are advancing their timelines on digital business initiatives and moving rapidly to the cloud in an effort to modernise environments , improve system reliability , and support hybrid work models , while addressing other new realities compelled by the pandemic .”
“LEGACY PLATFORMS ARE INHERENTLY SLOW AND COSTLY TO CHANGE ”
DANIEL COLE SENIOR MANAGING DIRECTOR FOR FINANCIAL SERVICES , PUBLICIS SAPIENT
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