The global pandemic has brought to light one of the worst-kept secrets of IT Departments. The majority of their budgets are spent on maintaining legacy systems and of organizations that were started before the space era. Many of those legacy systems were built before the graduating class of Gen-Zs computer science majors were born.
The challenge in starting transformation projects is that they are high-risk because most projects are mission-critical and have no redundancy. Insurers cannot do without their policy administration, billing, or claims systems for even a few hours. And, transformation is expensive. According to a study by Deloitte and LIMRA , the estimated payback period of 60% of transformation projects is more than 4 years or unknown.
Fortunately, all hope is not lost. Almost half of the companies surveyed by LIMRA  have completed at least one transformation so far. Traditional core systems providers have developed paths to derisk transformation and InsurTechs now have solutions to tackle challenges through APIs, Microservices, and partial replacements. Learn the latest changes from our panels of experts who have been through dozens of digital transformations.