In Focus: How can firms prevent their software from becoming legacy technology?

Simon Fenn, founder and director, Pancentric Digital

The secret is to nail your system architecture. 

Make it open so you have the ongoing flexibility to upgrade and add components and so you have the option to turbo-charge with the latest smart artificial intelligence (AI) tooling. 

And invest in your data. Streamlining processes might make you more efficient, but harnessing data is the future and your competitive edge.

Efforts to build a clean, usable and structured dataset are the key to optimising pricing, shaping healthier portfolios and delivering more intelligent, 21st-century services. Of course, you’ve got to install the open architecture position in the first place.

We’ve been canvassing views on the legacy issue and it continues to compromise efficiency and stunt value-add throughout the insurance supply chain globally – UK, Switzerland, France, Croatia, North America, Chile, Nigeria – the issue is everywhere.

The good news is that the ‘pathway to better’ doesn’t have to be a big bang change. It’s about defining where you need to get to – your target architecture – and then stepping towards it over time.

Create a roadmap. In the short term, this could entail running a modern cloud solution alongside your legacy systems, allowing you to pilot new commercial propositions.

In the medium to longer term, you decommission the legacy and, step by step, fold other aspects of your operation into the tried and tested cloud solution.

Tom Needs, chief executive, Applied Systems Europe

There is no doubt that technology is developing faster than ever before, presenting ever more opportunities for brokers to drive forward their businesses – as brokers that attended Applied Net in Nashville last month will be able to testify.

Forward-thinking brokers are right to be concerned that their broker management system may not be able to respond quickly to new developments and capabilities.

The good news, though, is that those with a cloud-based, software as a service (SaaS) platform – such as Applied Epic – can rest assured that they won’t be left behind.

There is no need for brokers to have to wait for critical updates or to fork out additional capital as new capabilities emerge.

Cloud-based platforms move with the times – enabling brokers to not only avoid being trapped by their legacy IT systems, but to embrace technology as and when it evolves.

At Applied, we invest heavily in our IT expertise, knowledge and new developments – such as our investment in Plank AI, so that we can keep pace with and embrace change.

Phil Williams, chief operating officer, Clear Group

Like in all businesses, the customer is central to this. What are their future needs? And how do we accommodate their emerging requirements if we don’t invest in evolving technology that fits around their future selves?

The trouble with large-scale software implementations is often that we think of them as one-off capital expenditure projects and, after millions of pounds of resources have been spent, there’s a fear that the end result is not fit for purpose – and, inevitably, technology becomes a legacy hangover.

There are ways around this.

The key is to have a multi-solution outlook by ensuring an infrastructure that has multiple components – and components is the keyword in this – that fit together.

The agility and versatility of Application Programming Interfaces (APIs), and interconnectivity of software systems, have made it easier to deliver solutions that meet the emerging needs of the client.

We see it at Clear. We’ve got the benefits of an in-house technology platform, underpinned by the stability of a core back office.

Combined, they allow us to be agile enough to develop new products, differentiate our offering, deliver on our customer promise of doing things right, while still providing a core infrastructure that delivers good governance and financial security.

Darren West, chief information officer, Zurich Insurance UK

In the rapidly evolving technological landscape, preventing software platforms from becoming legacy tech remains a challenge and necessitates a strategic, forward-thinking approach.

At Zurich, we have three key strategies to ensure our platforms remain relevant and competitive.

Firstly, we adopt a modular architecture where possible, which allows for incremental updates and integration of new technologies (API-led) without overhauling the entire system. This flexibility ensures that our platforms can evolve in line with technological advancements.

Secondly, we prioritise ways of working – including agile methodologies, continuous learning and innovation.

By fostering a culture of constant improvement, our teams are equipped to anticipate and respond to changes proactively. An instrumental part of this includes collaboration with our technology partners and new startups.

Finally, we continue our journey to leverage cloud-based solutions to enhance scalability, agility and resilience. Cloud platforms offer the ability to quickly adapt to new demands and integrate cutting-edge tools, ensuring these systems are always up-to-date.

By focusing on modularity, ways of working and cloud integration, Zurich Insurance is looking to mitigate the risk of software platforms becoming obsolete, ensuring we deliver sustained value to our customers and stakeholders.

Graeme Lalley, group chief operating officer, Jensten Group

In the rapidly evolving landscape of technology, proactive strategies can ensure software platforms remain relevant and avoid becoming legacy tech.

Embracing a culture of continuous innovation is crucial. This involves regularly updating and upgrading software with the latest advancements and industry best practices.

By fostering an environment where innovation is encouraged, firms can stay ahead of technological trends and maintain a competitive edge. That’s why broking software providers such as Acturis continuously evolve their platforms.

Investing in modular and scalable architecture also enables easier integration of new technologies and functionalities without overhauling the entire system.

By designing software with flexibility in mind, firms can adapt to changes efficiently and cost-effectively. Additionally, the ability to transition platforms when they reach end-of-life can avoid disruptions in operations.

The importance of utilising data and generative AI cannot be overstated. Leveraging data analytics can provide valuable insights into customer behaviour, risk assessment, and market trends, enabling informed decisions. Generative AI can also enhance customer interactions, streamline processes and drive product innovation.

And don’t forget cyber security. As technology evolves, so do the threats. Implementing robust security measures and staying updated with the latest security protocols is vital.

By fostering innovation, investing in scalable architecture, leveraging data and generative AI, prioritising cybersecurity and ensuring the ability to transition platforms, firms can prevent their software platforms from becoming legacy tech and remain competitive.