Legacy technology is hindering the insurance industry

Insurance CIOs believe legacy technology is hindering innovation within their business, according to Sam Medina, head of strategy for insurance at Tata Consultancy Services.

The analyst said CIOs must strive to enable future developments and not let new ideas be ‘filtered out’ in favour of existing beliefs and generalisations.

Medina claimed legacy IT did have a value, with organisation’s able to extract vital data and business rules from those systems. Although he added that companies should only keep what was worthwhile and ‘shed the rest’. Insurers have been encouraged to mine for data in order to improve their operations and customer experience.

He said: “View information and data as one of the crown jewels. Information and data stewardship and governance is vital to running the day-to-day business and to creating the insurer's future. Insurers cannot readily take advantage of developments such as Big Data, analytics, data visualisation, and predictive and prescriptive analytics without investing in aggregating and curating their information and data.”

He added that insurance companies should focus on, invest in, and innovate to provide the best customer experience possible. “Consumers continue to be more demanding since they are more knowledgeable, have access to many sources of information, and are more impatient -- especially the swipe-and-click generation,” he added.