Gartner Research

High Failure Rates in Insurance Legacy Modernization Challenge CIOs

Published: 20 January 2014

ID: G00260479

Analyst(s): Juergen Weiss


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


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

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