The True Cost Maintaining Legacy Data Management Systems for Insurance Runoff

David McAndrews, a self-professed “PhD of the Inefficient Processes” discussed the problems, inefficiencies and costs of maintaining legacy data through a patchwork of cobbled together legacy data management systems that he equates to Frankenstein’s Monsters.  As a result, McAndrews argues, the majority of companies cannot leverage big data.  This is because information is spread over multiple systems which cannot communicate and because IT departments tend to “Frankenstein together” work-around procedures.  To “manage the monster” McAndrews recommends data migration to a single “interoperable platform” which can easily work alongside continued technological development and also result in greater Cyber security.

McAndrews provided a description of “p1 runoff” software by HMR Group.  p1 helps maintain security and integrates the existing platforms.  Noting that redundancy leads to mistakes, McAndrews identified the “Automated Interface Module” or “AIM” by p1 as a capable solution that replicates the entry of duplicative data so the job can be done once and repeated thereafter.  Likewise, McAndrews identified the p1 “Service Line” as a way of bridging the gap between outdated legacy systems and the connectivity requirements of today. 

Finally, McAndrews offered his top 5 things that can be done to improve insurance data management:

1.    Keep it simple;

2.    Less is more;

3.    Look for Small Wins;

4.    Encourage Cross Pollination; and

5.    Choose p1.