Rigid and sometimes decades-old legacy and claims systems with high maintenance outlays and limited flexibility are the status quo among many insurers. But these systems are rapidly meeting their limits when it comes to mapping digital business processes. New technical requirements can only be implemented with enormous development costs, if at all.
In light of this, more and more insurers are opting to replace their old legacy and claims systems. Once the decision has been made, the decision-makers are faced with the challenge of selecting the right modern legacy solution for their company from a variety of providers. For this, objective criteria must be created in order to assess which system is ultimately worth considering as a target solution. A three-step approach can aid a swift decision-making process when it comes to selecting the best possible system.
Step 1: Gain an overview of the current provider market
Legacy and claims systems available on the market have now achieved a very high degree coverage for the requirements of insurance companies. It is therefore advisable, as well as the in-house development option (make), to consider the introduction of a standard software (buy). Given the current depth in the provider market, up-to-date market knowledge is indispensable when it comes to choosing a new system. Insurers are presented with major challenges since the market is changing so rapidly.
How Q_PERIOR can support you in step 1:
Over the past few years Q_PERIOR has supervised a variety of selection processes for legacy and claims systems on the insurance market. As such, our advisors have the necessary expertise and market knowledge to give you an adequate overview of the providers suitable for your project.
Step 2: A requirements catalog forms the most essential basis for evaluating software providers
Insurers must know not only the provider market, but also their individual requirements for the new system. The company’s own requirements must be clearly defined in order to make a reliable decision. Therefore, the specialist requirements, not the functional or technical requirements, for the new legacy and claims system should be documented precisely and concisely in a structured requirements catalog. Since this requirements catalog forms the basis for the subsequent evaluation of software providers and their solutions, it is imperative that this is complete and unambiguous. It is also advisable in this context to analyze existing processes for their degree of maturity with regard to digitization.
How Q_PERIOR can support you in step 2:
Reference models for insurance companies offer the opportunity for a comparison of the company’s own requirements with customary market processes and requirements and for missing requirements to be documented subsequently. The Q_PERIOR Insurance Model brings process architectures into line with specialist architectures, thus forming the ideal basis for the complete definition of requirements for the future legacy and claims system. Q_PERIOR also has access to a pool of more than 800 tried and tested requirements, on the basis of which we can align and refine your individual wishes.
Step 3: Create traceability and transparency with the right evaluation methods
After compiling the requirements, these must be weighted, prioritized and assessed in order to make the final choice. This step requires a high degree of accuracy since sometimes several hundred new legacy and claims systems requirements can be involved. Using the right methods, the degree of coverage of the requirements is illustrated comprehensibly and transparently in mathematical models. Then there is the opportunity to subject the providers with the best ratings to a more in-depth evaluation within the context of a provider presentation or proof of concept.
How Q_PERIOR can support you in step 3:
Q_PERIOR offers insurance customers ready-made templates which can be used to quickly structure requirements into thematic blocks. These templates enable weighting by thematic blocks as well as individual requirements for use in a subsequent mathematical evaluation. If there is still a need to assess certain requirements as absolutely indispensable, these can be labeled “must-haves”. Finally, an analysis of the results shows the number of fulfilled or non-fulfilled “must-have” requirements.
Find the right legacy solution with the right tools!
Even if a selection process with so many determinants may seem overwhelming to insurers at the start of a renewal project, the complexity can be reduced significantly with the right methods and appropriate tools. Q_PERIOR provides both, so that insurers can quickly reach objectively justified decisions and won’t run the risk of following deceptive gut feelings.