Gartner Research

High Failure Rates in Insurance Legacy Modernization Challenge CIOs

Published: 20 January 2014

ID: G00260479

Analyst(s): Juergen Weiss

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
  • Impacts

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

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client