PriyaPatel
TLDR:
Insurance industry needs to break free from legacy systems and embrace modern technology to stay competitive and meet consumer demands for lower costs, transparency, personalization, and faster claims processing. Psychological barriers like sunk cost fallacy and fear of failure hinder digital transformation, but advancements like no-code technology make modernization easier than ever.
Breaking the hold of legacy tech
The article discusses the reluctance of insurance leaders to let go of outdated legacy systems in favor of modern technology. The sunk cost effect, where decisions are influenced by past investments, is a major barrier to digital transformation. Businesses fear the risks of failure and complex, costly overhauls that they faced decades ago.
However, the article emphasizes that with advancements in technology, such as no-code platforms, modernization is now more efficient and accessible. Companies that cling to old systems limit their ability to scale, innovate, and meet consumer expectations. Insurers must adapt to stay competitive in the rapidly evolving digital landscape.
Consumers are demanding a seamless, customized experience from insurers, including lower costs, transparency, and faster claims processing. To meet these expectations, insurance companies must embrace modern technology and let go of outdated legacy systems that hinder progress and impede digital transformation.
