Failure to provide an upgrade path is a cardinal sin
The moment an insurer implements a new policy administration system (PAS) or insurance management software, the clock starts ticking! Failurer to provide a clear upgrade path is a cardinal sin as that system will eventually become outdated, forcing customers into a costly and disruptive “rip-and-replace” project just to stay competitive. And with technology advancing as quickly as it currently is, that distruption could come sooner than you think and leave you unable to react to market opportunity or operationally inefficient in comparison to your peers.
Software vendors that fail to provide a seamless, structured way for their customers to adopt new features and technology leave insurers stranded on aging platforms, while competitors leverage the latest advancements. Furthermore, it’s a clear sign that they are prioritising future customers and not those that they’re currently paid to service. And this is why we’re calling this giant red flag, a cardinal sin.
The Cost of Stagnation
An unclear upgrade path locks insurers into outdated technology, making modernisation increasingly challenging and expensive. Worse still as you are stood still, those around you are moving forward, gaining valuable competitive edge be it with more competitive pricing or operationally efficient (and thus more profitable) processes. And don’t underestimated the impact this has on your people – nobody wants to spend their days battling with outdated technology and with the talent war in insurance perhaps more aggressive than ever, your best people will seek out other opportunities. Then you’ll be left with both poorly performing technology and people.
And there are some important statistics to back this viewpoint up:
🚨 70% of digital transformations fail due to resistance to change and outdated systems. (McKinsey & Company)
🚨 60% of data breaches stem from unpatched vulnerabilities in legacy software. (Forbes)
🚨 On average, insurers running outdated systems face a 30% increase in operational costs. (Accenture)
🚨 By 2026, 75% of companies still reliant on legacy software will face severe financial and operational challenges. (Gartner)
Being unable to upgrade leads to:
✅ Higher operational costs – Maintaining and integrating legacy systems gets more expensive over time. When you consider that circa 15% of an insurers total expenditure will relate to operating expenses, the above suggests a saving of near 5% of your total expenditure will be achieved through modernising. Suddenly, that new platform doesn’t seem like quite such an expensive investment!
✅ Security vulnerabilities – Older systems are prime targets for cybercriminals due to missing security patches and outdated technology.
✅ A competitive disadvantage – While others embrace automation, AI, and cloud technology, insurers on outdated platforms fall behind. Whilst their team are battling with technology and manual processes, their peers are automating adminstration with technology that enables them to do more, faster and returns them to high value tasks.
✅ Regulatory and compliance risks – Many legacy systems struggle to meet evolving industry regulations. New regulations and compliance requirements can be dropped on financial services businesses almost overnight and the inability to meet those requirements could, with no exaggerration, signal the end of an insurance business leaving you with sudden, unexpected expenses that you will almost certainly not have budgeted for.
💡 “To improve is to change; to be perfect is to change often.” – Winston Churchill
Why a Defined Upgrade Path Matters
A structured upgrade path ensures insurers can evolve their technology without disruption. Instead of a massive system replacement every few years, insurers can implement incremental improvements that keep them up to date.
🚨 Companies that prioritise continuous software modernisation see a 40% increase in efficiency. (Harvard Business Review)
A robust upgrade strategy should offer:
✅ Seamless transitions – New features and improvements should be adoptable without causing downtime.
✅ Backward compatibility – Existing configurations should integrate smoothly with new updates, minimising redevelopment costs.
✅ Continuous innovation – AI, cloud capabilities, and automation should be integrated progressively.
✅ Security and compliance updates – Regular upgrades ensure protection against cyber threats and adherence to regulatory changes.
💡 “Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” – Benjamin Franklin
Genasys Unify: A Smarter Approach to Upgrades
At Genasys, we designed Unify with the goal of ensuring our customers can evolve with the latest technology without the need to replace their entire system.
💡 “Our existing customers are the lifeblood of our business. Unify was designed to give them a seamless evolution path, so they can adopt new technology without disruption.” – André Symes, Group CEO, Genasys
Many insurers are already transitioning to Unify, accessing modern architecture, automation, and advanced analytics without the challenges of a system overhaul.
Software vendors that fail to provide an upgrade path not only complicate operations for their customers but also hinder their long-term success. Insurers should never have to choose between stagnation and costly system replacements.
🚨 95% of CIOs say a clear upgrade strategy is a top priority when selecting enterprise software. (IDC)
A lack of an upgrade path isn’t just an inconvenience—it’s a cardinal sin. The future belongs to software that evolves, not expires and that focuses on the long term success of its customers, giving them the agility to react, to innovation and to thrive.
