Insurance Technology Featured Article

Best Practices for Legacy Insurance Claims System Replacement

October 23, 2012

In the quest for efficiency, flexibility and the ability to easily organize workflow, claims managers are quickly realizing their legacy claims systems are standing in the way of these objectives. Insurance adjusters are beginning to understand that something needs to be done, however, the options that are available to solve the problem can sometimes be vast. The procedure to integrate your existing legacy insurance claims system, data, and information into a new system that includes new business processes can become an IT conundrum.

Insurance claims software systems are critical and can hold vital information that was acquired over the life of the company. The data is big and stuffed with years of useful information, and it is not surprising that legacy claim systems at times don’t play well with modern technology processes and systems. Claim Managers have made very large investments into their existing software claim systems, and can be hesitant to implement new changes. Scrapping legacy systems and replacing them with more modern software can involve a significant business risk, however it makes it possible to get the best of the old and new, and take advantage of new technology processes.

To make an easier migration for insurance adjusters first identify the best type of migration for your data. For smaller carriers it is possible to effectively cut loose and replace your entire system at once. For carriers that are larger with several lines of business your transition may need to be done in a trickle down method. Both your legacy and modern claims processing system should run in correlation with each other before fully deploying the integrated claims system.

Integrating your modern claims processing software, while still managing your legacy claims management system can be done successfully with the right strategy. Several items should be clearly mapped out:

  • Goals – This is a major one! Not only will your modernized claim system help your adjusters to become more flexible with data, but it will also give you the ability to operate more efficiently and better serve your customers. Properly outlining each new updated business processes to increase your workflow productivity will be essential to the end result of how everything will work and how claims managers will interact with the system.
  • Availability – Take necessary precautions to make sure to keep the claims systems running and available for Claims Managers and put together a strategy on how information will be backfilled from your legacy claim system into the modern system.
  • Contact – Having an open line of communication between developers gives you the access to voice questions and test your claims management system in an efficient manner.
  • Priorities – Be sure to list major priorities in your integration road map so that high level features are considered first during the development of your insurance claims system.
  • Testing – There should be a significant amount of time set aside for testing your new system during implementation. Extensively testing before and after deployment can resolve any problems that may occur during the implementation process.  

There are different approaches to the modernization and replacement of legacy claim systems.  The insurance claims management industry is embracing change now more than ever before. With the right knowledge and a solid roadmap large deployments and replacement solutions can successfully become less stressful and contain less business risks.

JDi Data Corporation has provided insurance claims software since 1992. JDi Data offers web-based workers compensation software and also claims systems for insurance claims departments, third-party administrators and risk managers to administer property, casualty and general liability claims. JDi Data has built a reputation in quality claims management software with special emphasis on specialty lines and complex litigation.




Edited by Brooke Neuman

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