High Failure Rates in Insurance Legacy Modernization Challenge CIOs


Archived Published: 20 January 2014 ID: G00260479

Analyst(s):

Not a Gartner Client?

Want more research like this?
Learn the benefits of becoming a Gartner client.

contact us online

Summary

Poor planning and an overly high level of optimism are resulting in a significant risk of failure for the legacy modernization initiatives of CIOs at life and P&C insurers. According to a Gartner survey, only 42% of projects meet the original budget, and 82% take longer than expected.

Table of Contents

  • Analysis
  • Impacts and Recommendations
    • Failure to modernize legacy systems will prevent insurance CIOs from supporting business innovation
    • Budget and time overruns of legacy modernization projects are driving insurance CIOs to pursue shorter payback cycles
    • Insurance IT leaders prefer gradual implementation strategies to mitigate legacy modernization risks
  • Gartner Recommended Reading
© 2014 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Free Research

Discover what 12,000 CIOs and Senior IT leaders already know.

Free Access

Why Gartner

Gartner delivers the technology-related insight you need to make the right decisions, every day.

Find out more