Legacy systems stand in the way of modern, cost-effective operations

Insurance firms keep records in industry-specific applications, the lifespan of which is anywhere from seven to 15 years. But firms often must retain records for decades. Discordant timelines cause “stranded” records, a problem exacerbated when major events, such as M&A or regulatory audits or reporting, require stringent records review. For 60% of companies, stranded records management is a challenge without an apparent solution.

Maintaining legacy records management systems is a costly endeavor. Extracting electronic documents can also be an expensive and time-consuming effort. Moving from legacy systems and applications to modern tools with granular records management policy controls can solve the stranded records problem and provide better returns on investment. Large insurance industry incumbents could more than double profits over five years by digitizing existing processes. However, carriers spend just 0.2% of GWP on technology development.