It is important to note that insurance modernization requires the effort and involvement of multiple stakeholders, not just the actuarial and finance functions. Accordingly, the C-suite needs to be fully on board in order to build a case for change and align it with overall strategic objectives. This will provide the rest of the organization an understanding that changes are coming that will change the way the business operates and how it makes decisions.
Because doing so will serve as a catalyst for a successful modernization program, insurers should begin to mobilize now. This includes engaging the many stakeholders modernization will impact, assessing strategic, organizational, and business impacts, and developing a strategic execution plan.
Insurers need to outline primary legacy challenges and future business and regulatory needs. A comprehensive study at the outset will allow insurers to thoughtfully sequence their insurance modernization initiatives. Because of the far-reaching impacts the study is likely to identify, senior management should share a roadmap with all constituents prior to implementation.