ReSys for Life Legacy
There are several reasons why systems become "legacy" and the main reason for this is time. These systems are usually at the core of an insurance company’s operations and there is a natural tendency not to touch something that works - the "don't fix it if it works"-approach.
- life business is long tail, thus technology has changed and companies have purchased new systems without getting rid of the old ones,
- some specific products are run by systems designed for that particular purpose
As a result of these factors, most life pension companies have a situation where they have to maintain a large number of systems/applications in complex environments with ageing hardware and applications. [It is estimated that in some cases the maintenance of these old systems takes up 70-90% of companies’ IT-budgets]
The real impact of a legacy problem is that the business owner loses control of the business process, i.e. the legacy systems start to dictate what can or cannot be done. The ability to react to market and regulatory changes (such as Solvency II, tax changes) is diminished, flexibility and agility is lost, fewer resources are available to develop for the future etc.
