Legacy systems are costly but artificial intelligence (AI) is reportedly opening up new possibilities to efficiently migrate closed books to new platforms. This, according to a new Capgemini report which also says the effort can increase profits and help insurers provide a more seamless experience for all involved.
Entitled AI can accelerate life closed-block migration, the report advocates for AI’s use in managing and migrating legacy systems, saying the use of AI can cut 20 to 40 per cent of the time and costs out of legacy closed-block migrations.
Cost and complexity
“There is great value in migrating life insurance closed-block operations from legacy to modern systems, but the cost and complexity of doing so has traditionally created significant challenges,” they write. “Legacy closed-block systems can be costly to maintain and migration can dramatically reduce operating expenses.”
The report looks at why closed-block migration is so complex, at how to prepare old data for a new system and how to go about bringing AI into the process. “AI can analyze up to 90 per cent of data in a legacy system with nearly 100 per cent accuracy – representing a huge time savings,” they promise.
However, they add, “AI is not a replacement for humans in the migration process,” they warn. “Instead, this sophisticated technology augments their efforts and empowers them to focus on more value-adding and critical decision-making tasks.”
