Gartner Research

Legacy Systems Challenge Product Innovation for Life Insurers

Published: 30 September 2013

ID: G00258018

Analyst(s): Steven Leigh, Kimberly Harris-Ferrante

Summary

As life insurers look to launch products to market quickly, many are finding they cannot fulfill their business visions due to the inflexibility of their legacy systems. CIOs must understand the need for speed to market for new products and how IT should be modified to support business innovation.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Life insurers operating legacy IT environments will find product development challenging, which will cause frustration among business leaders
  • Life insurers implementing a policy administration system specifically for new business will provide fast time to market over full system replacement; however, it will drive up the TCO for the overall IT environment
  • Life insurers increasingly will look to BPO providers to support new-product launches, enabling them to get to market faster than undergoing modernizations of older policy administration systems

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