The New Age of Customer Communication in Insurance: A Business Case for Legacy Modernization

by Nicolas Michellod, August 25, 2015
Industry Trends
Global

Abstract

The insurance industry has always approached customer interaction in a way that reflects the nature of the business relationship with the policyholder, but this is beginning to change.

 

In the report The New Age of Customer Communication in Insurance: A Business Case for Legacy Modernization, Celent describes this “new age” and explains why insurers need to consider it when embarking on legacy modernization programs. The report is based on the results of legacy modernization surveys launched by Celent in 2010, 2013, and 2015.

“A vast majority of insurance companies expect to improve their business agility by following their legacy system modernization program,” says Nicolas Michellod, a senior analyst with Celent’s Insurance practice and author of the report. “Being able to address customer needs in a flexible and timely manner has been the main objective of insurers over the past five years.”

This report contains thirteen figures and one table.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Information about Our Legacy Modernization Survey

2

 

Panel of Participants

2

The New Age of Customer Communication

4

 

Drivers of Change in Customer Communication

4

 

Ubiquitous Data

4

 

Increasing Customers’ Expectations

6

 

Customers’ Need for Improved Communication Experience

6

Tackling the Legacy Challenge

8

 

Legacy Impact on Desired Levels of Customer Service

8

 

Expected Benefits of a Legacy Modernization

8

 

Elements of the Business Case

9

The Business Case for New Document Creation and Portal Design

11

 

Cost Expectation Following Legacy Modernization

11

 

Responsibility Move Following Legacy Modernization

12

Final Thoughts

15

 

Getting More Selective in Legacy Modernization

15

 

The Role of IT Vendors in Legacy Modernization

16

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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