Current customer sentiment clearly shows a desire for affordable products and a hassle-free experience with prompt service delivery. However, most insurers struggle to fulfil this expectation because of the limitations of their legacy systems and infrastructure. In order to stay relevant in the market, established insurers have been looking for faster and cheaper ways to create products and services to compete with digital-native challengers, who are not encumbered by legacy systems.
Technology aside, upgrading legacy systems involves potential disruption to existing services, additional costs for developing and migrating to new systems, and associated change management issues. In this paper, we explore a potential approach to upgrading legacy systems with a universal insurance event model which creates the least disruption and hence lowest risk. We introduce an event-driven architecture running on blockchain technologies, and look at a scenario for Hong Kong's Mandatory Provident Fund (MPF). We show how applying a technology like Ignatica’s can lower transition costs and risks, while allowing insurers to operate at lower costs and with greater flexibility to engineer products and customer experience.
We believe that this approach and architecture can help modernize the legacy systems of any insurer – in Asia or globally.