GT Motive for Insurers

The Risks of Legacy Systems

Computer technology in factory

As technologies continue to advance, the automotive claims industry is constantly considering new measures to protect itself throughout all areas of the supply chain. This could mean anything from insurers utilising digital tools and password or user protected system access rights, straight through to estimatics providers using sophisticated MI reporting or integrating APIs with trusted partners.

No matter which measures a business chooses to take or how many standard work processes they choose to put in place, moving away from legacy systems to switch to cloud-based technology can be one of the best decisions to help provide a safer, more secure environment when hosting data online. Let’s explore why.

What do we mean by a ‘legacy system’?

Essentially, a legacy system means technology which is outdated, but still useable. 

Legacy systems do still do what they were built for originally, but as they are technically ‘older’ technology, they come with several risks which have the potential to damage businesses significantly.

For insurers, continuing to use legacy systems just is not worth the risk.

Legacy systems are an increased security risk

Data safety and security is absolutely critical for the automotive industry as 20% of insurance claims from 2022 are thought to have contained fraudulent information, according to a recent survey by FRISS. This is an increase of 18% compared to their previous survey from 2020, and the same research uncovered that whilst insurance professionals have always had their suspicion about fraudulent claims, there has been a significant increase in the later days of COVID-19, claiming that this is because fraudsters had no choice but to become ‘more creative.’

When put into perspective, these fraudulent claims resulted in over 11,000 instances of claims fraud last year alone, equating to a total loss of over £122 million, as reported by Aviva in their latest findings.

Legacy systems are inefficient and unstable

Working with out-of-date software means that anything goes wrong, breaks or completely stops working, then there’s limited resource available to fix things quickly, let alone fix them at all.

What’s more, since the dated technology means updates cannot be administered over the cloud, it means that technicians need to physically come to a site to attempt the fixes manually.

Legacy systems are incompatible with newer technologies

Before open APIs and integrations were widely talked about, technologies were not designed with the future-state in mind. This leaves businesses who operate legacy systems falling behind, since the software is effectively ‘closed-off’ and cannot be added to, scaled up or partnered with any other platforms.

Legacy systems need continuous training

Building a team of experienced, knowledgeable developers is never a quick job, but in the automotive claims industry where there is an extremely high turnover of talent, using legacy systems means that resource is always consumed in training new staff on older solutions, rather than fixing any actual issues.

Legacy systems have a single point of failure

As legacy systems often act as just the one single tool to run an entire business, it also means they offer only a single point of failure. If anything goes wrong with that technology, it has the potential to stop operations in its tracks, especially if that technology can only be supported by a handful of development experts.  

Legacy systems take firefighting

There are never enough hours in the day, and for development teams, the more time they spend firefighting issues with legacy systems, the less time they can spend on the key business priorities, let alone troubleshooting customer queries.

Legacy systems have a lack of concise information

At the time most legacy systems were built, data transfers were not a big consideration. As a result, MI requests often involve pulling data from many different sources, increasing admin time to provide new reports.

Legacy systems can damage company perception

And finally, a company that doesn’t innovate and isn’t aligned in its vision, becomes a liability.

It shows that the business does not look ahead to a future state, is happy to stay complacent and has no ambition to improve.

Legacy systems vs. cloud-based solutions

Built to connect all stakeholders and network partners within a single, secure platform, GT Motive offers a modern and intuitive solution for complete claims management that reduces claims costs and cycle times, whilst increasing efficiencies and protecting businesses.

We do this by offering a more accurate and up to date data within the system, such as part prices, VIN query and ADAS identification. As a result, GT Motive can help reduce the number of supplements required and any double keying, enabling your productivity to remain at the highest level.

But that’s not all.

Our cloud-based technology built on a single database, common structure, with a single integration point to the platform across all of Europe, allows us to offer the most complete catalogue of both collision and maintenance, based on accurate OE data.

Not only does this allow us to offer an accurate 96-98% car parc coverage, it also means that GT Global can form a secure part of your disaster recovery planning as well, acting as a complete digital ecosystem for your claims management processes.

Request your free GT Motive trial today.