Bringing change within any organization is hard to achieve.Arguably the larger the company, the more complex and difficult itis. Add to that geographic and cultural differences, and it muddiesthe water further.

Related: Insurance 2017: Priorities for innovation,automation and transformation

Change encounters roadblocks. From the reticence of employees tochange their working practices, to the difficulty of gettingboardroom support on new market opportunities or ideas developed…change is challenging.

A matter of survivial

So why should we persevere? Because it is a matter of beingrelevant, competitive… and even ensuring survival.

With the rapidly evolving and disruptive business environmentdue to changes in people, technology and market boundaries, therequirement to alter insurers' internal and external engagementoperational procedures has never been more pressing.

Most of us are familiar with the old idiom of "when change meetsculture, culture invariably wins." Perfect. When changedoesn't materialize or happen quickly, we can blame the lack ofdynamism in the company, workforce or (laughably) lack ofimagination within our customer base.

For those working in or managing large, dispersed workforces,conveying a new idea is difficult at times and bringing new ideasthrough takes time to get the full "buy-in" that one would ideallywish. However, during the last 5-8 years, there has been asignificant shift in where the balance of blame now lies. Yes, it'shard to win people over initially. They do come over eventually.But it's frankly impossible if the core business systems are not upto the task. Core business systems can become the wall ofresistance.

The move toward 'customer-centricity'

There is a seismic change in the marketdynamics, both internally and externally, in how we must engageprospects and customers. Prior to about 2000, most employees,prospects and customers were, at best, technology novices. Theadvent of the Internet and the rise of e-business, coupled with theintroduction of the smartphone, iPad and other innovative devicesrapidly altered the landscape forever, creating a new generation ofdigitally enabled individuals. Whether by adapting to digitaltechnologies or being "born digital" we entered a new age ofinsurance that is underpinned by modern, emerging technologies.

In this new digital age, everyone has access to digital technology in his or her everydaypersonal lives. Yet, for many, their work life is a "trip back intime" due to old and frankly outdated systems. Green code-drivenscreens may have, for the most part, been replaced with graphicalinterfaces, but core systems are typically very long in the toothand do not reflect the art of the possible.

But replacing these legacy systems is challenging. The insuranceCIO bemoans the fact that requested work stretches out years intothe future, keeping maintenance of legacy systems front and center;with the future vision no more than a vague dream. It is a majorproblem that cannot be solved as we did in the past, when we simplyshifted more resources to maintain legacy systems.

The insurance industry, as a rule, is miles behind providingcapabilities or convenience like an Amazon, Uber, various travelsites and even (heaven forbid) most banks. While there aredifferences in the products and the engagement lifecycle, customerexpectations see no boundaries and expect the same "Amazon"experience from insurers.

Playing catchup

In today's digital age, technology drives andunderpins every organization. If change is to be brought about,the CIO must lead the way and provide the requisite business andtechnology platform that is the foundation for a rapidly changingfuture. Unless the CIO is released from trying to maintain andenhance tired non-conforming legacy systems, which consume a highpercentage of both people and investment resources, it's hard tosee how insurers will ever catch up, let alone get ahead of thegame.

It's no longer just culture standing in the way of change. It'slegacy core business systems as well.  The disruption andchanges that are reshaping industries, and the businesses withinthem, are creating unprecedented growth opportunities for insurerswho can capture the opportunities in terms of new risks, newmarkets, new customers, and the demand for new products andservices. Cloud-first business solutions are thefoundation for these insurers. They fit the fast-paced world wherea new generation of start-ups, new product launches and expansioninto new market segments is creating a new age of insurance.

This blog post firstpublished at Majesco.com, and is reproduced with the expresspermission from Majesco. The opinions expressed here are theauthor's own.

See also:

Innovation can overcome growth obstacles forinsurers

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