Home Insights Breaking down legacy barriers: A deep dive into insurance modernization

Breaking down legacy barriers: A deep dive into insurance modernization

Leo Shulman

January 23, 2025 • 9 min read

Table of Contents

The legacy system landscape in insurance
The hidden costs of technological stagnation
Insurance modernization with Grid Dynamics and Origami Risk
Tangible benefits of modernization
Closing note

The insurance industry has long been characterized by its reliance on outdated, inflexible, and cumbersome legacy systems. Although the sector manages trillions of dollars in assets and plays a vital role in global economic stability, insurance technology must help keep pace with the digital revolution. Recent research paints a stark picture: approximately 70% of insurance companies are still heavily reliant on legacy systems originally developed decades ago, creating a significant technological debt that threatens their competitive advantage.¹

Traditionally, a cautious culture driven by a focus on policy underwriting margins and solvency has slowed the pace of innovation and modernization. This approach has led to inefficient and unsustainable reactive strategies, especially in the face of unprecedented challenges like escalating climate-related risks and high inflation. Despite digital modernization efforts, most insurance companies want to invest in established technologies with a proven track record. According to Gartner, only 29% of insurance companies scale their digital businesses, and digital investments are not scaling to their optimum.²

Legacy systems are substantial roadblocks to innovation. These aging infrastructures create multiple challenges:

Inability to integrate advanced analytics and AI technologies
Slow response to market changes and customer expectations
Increased cybersecurity vulnerabilities
Limited flexibility in product development
Inefficient data management and processing

The legacy modernization challenge facing the insurance industry is multifaceted and urgent. It involves fundamentally reimagining how technology can drive business strategy, enhance customer experience, and create operational efficiency.

Global AI software spending in the insurance industry will reach $15.9 billion by 2027, with a five-year CAGR of 18.2%.³

42% of insurers already invest in GenAI, while 57% plan to invest.⁴

Forrester forecasts an 8% increase in tech spending across the insurance industry in 2025.⁵

The Grid Dynamics and Origami Risk partnership represents a beacon of hope in this challenging landscape—a strategic collaboration to break down these technological barriers and propel the insurance industry into a more agile, efficient, and customer-focused future.

Origami Risk insurance features chart — Origami Risk features

In this deep dive, we’ll explore the intricate challenges of insurance modernization, demonstrate innovative approaches to overcoming these obstacles, and illustrate the transformative potential of a well-executed digital strategy.

How are we reimagining Insurance technology with Origami Risk?

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The legacy system landscape in insurance

With 41% of insurance CIOs stating that legacy systems are the primary barrier to tech success⁶, the cost of inaction has never been higher.

Top five challenges to legacy modernization

The hidden costs of technological stagnation

At first glance, legacy systems might appear functional. However, the costs to insurers run deeper than many realize.

1. Outdated infrastructure: Operational efficiency trap

These systems are inflexible and costly to maintain, limiting insurers’ ability to respond quickly to market shifts and customer demands. With 70% of IT budgets allocated to maintaining outdated tech, insurers are left with little to invest in innovation.⁷

2. Architectural rigidity: The innovation bottleneck

Legacy systems often result in “one-size-fits-all” processes, lacking the modularity required to test and implement new features or services. This rigidity stifles product innovation, lengthens development cycles, and creates missed competitive opportunities. Research indicates that 74% of insurance companies still rely on legacy architecture for core functions, which hinders their ability to innovate and respond to market changes effectively.⁸

3. Data silos: The isolation problem

Operating on fragmented, unintegrated systems results in siloed data and, in turn, hinders collaboration and insights. With 65% of insurers reporting that data silos negatively impact operations, the implications are clear.⁹

4. Security vulnerabilities: The hidden risk

Legacy technology, built without modern-day cyber threats in mind, exposes insurers to significant risks. Breaches can lead to catastrophic financial losses and reputational damage, especially in an industry handling sensitive and regulated customer data.

These challenges demand a bold response.

Insurance modernization with Grid Dynamics and Origami Risk

Navigating these complex challenges requires innovation, expertise, and an industry-specific understanding. That’s where Grid Dynamics and Origami Risk step in—offering a unified, cloud-based SaaS solution tailored specifically to insurers seeking modernization. Together, we deliver solutions designed to optimize workflows, reduce manual inefficiencies, and future-proof operations with advanced analytics and intelligent automation.

circle chart showing insurance modernization features

The power of cloud-native architecture

At the core of this transformation is a robust cloud-native architecture. This modern infrastructure offers several pivotal benefits:

Scalability to meet growing demands
Resilience against disruptions or failures
Streamlined management for operational oversight
Rapid deployment to reduce time-to-market

The forward-thinking design of Origami Risk’s cloud-based SaaS platform, enhanced by Grid Dynamics’ expertise, provides a modular and adaptable foundation for seamless integration, data sharing, and efficient workflows. This enables insurers to address several key challenges of traditional insurance technology and deliver:

Operational efficiency: By centralizing data and automating workflows, Origami Risk significantly reduces processing times and operational costs. For example, some insurers have reported a 30% reduction in claims processing times after implementation.¹⁰
Scalability and flexibility: Unlike legacy systems struggling with scalability, Origami Risk is a cloud-based platform that easily adapts to growing business needs without extensive infrastructure modifications.
Data silos and integration: The platform’s unified approach eliminates data silos, allowing for seamless integration of various functions such as policy administration, claims management, and risk assessment.
Regulatory compliance: The platform helps insurers comply with evolving regulatory requirements with real-time updates and configurable workflows.
Customer experience: The mobile app and self-service options enable faster claims processing and improved access to information, leading to higher customer satisfaction rates.
Innovation agility: The cloud-native architecture allows insurers to rapidly dep

See how cloud-native application modernization drives value

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Unified risk and operations management

Origami Risk brings a comprehensive platform tailored for property and casualty insurance. It encompasses robust features for policy, billing, and claims management, offering insurers an all-in-one solution to manage the complexities of the insurance lifecycle. It also includes:

Customizable dashboards for precise data tracking
Advanced risk visualization tools to simplify insights
Scalable workflows to adapt to growing business needs

Platform capabilities

The platform offers a wide range of capabilities designed to streamline operations and enhance efficiency:

Integrated solutions: The Origami Risk platform provides a unified environment for Risk Management Information System (RMIS), Governance Risk and Compliance (GRC), Environment Health and Safety (EHS), and insurance core systems.
Highly configurable: Without custom coding, any component within the platform can be tailored to meet specific business requirements and workflows.
Scalability: The cloud-based architecture allows for easy expansion of computing resources, including processing power, storage, and user capacity, allowing it to adapt to changing business objectives.
Multi-tenant structure: All users operate on the same version, ensuring the latest security updates and functionality are immediately available.

Mobile application: The Origami Mobile app empowers Environment, Health, and Safety (EHS) professionals by enabling them to conduct audits, inspections, and incident reporting directly from the field. This capability is particularly valuable in environments where real-time data collection and immediate action are critical for maintaining safety and compliance. The app’s offline functionality ensures that these tasks can be performed even without internet connectivity, further enhancing its utility for EHS operations.
Advanced analytics: The platform offers sophisticated analytics tools and customizable dashboards for deeper insights into operations and risk management.
Automated workflows: Critical processes are automated, improving efficiency across policy management, claims processing, and billing.
API integration: Robust API functionality allows for seamless integration with other systems and tools, enhancing interoperability.

AI-powered capabilities

The partnership’s AI-driven functionality equips insurers with advanced tools for automation and data enrichment:

Automation for claims processing, risk assessments, and underwriting
Predictive analytics for fraud detection and faster decision-making
Dynamic reporting for actionable business insights

This allows organizations to overcome inefficiencies and achieve greater operational precision while reducing manual intervention.

Discover how Grid Dynamics Policy Pulse uses AI to streamline regulatory compliance, accelerate quote renewals, and enhance customer service. With tools like a Generative AI Assistant for real-time support, Policy Pulse helps insurers adapt policies swiftly, improve efficiency, and drive growth.

Transformative data analytics and real-time insights

A McKinsey report shows that the top performers of the insurance industry are now outperforming their competitors by developing advanced data analytics underwriting capabilities that provide significant value.¹¹For example, by leveraging data analytics in insurance underwriting, leading insurers could improve their loss ratios by 3 to 5 points with a 10% to 15% increase in business premiums.¹²Leveraging enhanced data infrastructure is critical for actionable insurance insights:

Unified data migration strategies to ensure regulatory compliance and minimize disruptions
Real-time analytics to identify trends and risks promptly
Optimized data lakes and AI models to centralize data storage and processing

Data migration as a key focus

Data migration is one of the most challenging aspects of modernization. Grid Dynamics delivers advanced strategies for transferring, cleansing, and validating data to ensure smooth transitions. Key considerations include:

Preserving data integrity during transformation.
Ensuring documentation of data lineage for traceability.
Using modern data platforms, such as data lakes, to accommodate real-time analytics and structured or unstructured data.

These tools help insurers refine underwriting precision, optimize loss ratios, and improve customer retention with informed, data-backed decisions.

The GenAI Data Migration Starter Kit simplifies code migration, upgrades, and replatforming with modern LLMs.

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Seamless technology integration

Grid Dynamics ensures that Origami Risk integrates smoothly into existing ecosystems for optimal connectivity across systems:

Custom APIs for enhanced interoperability
Data visualization tools to unify complex datasets
Connected processes for a streamlined, user-friendly experience

From underwriters and adjusters to agents and claimants, every stakeholder benefits from a supportive and intuitive technological infrastructure.

Origami Risk demonstrates how a cloud-native, integrated platform can revolutionize insurance technology, providing a more efficient, flexible, and customer-centric approach to risk and insurance management. Combined with Grid Dynamics’ technical expertise, these capabilities ensure an efficient, adaptable, and scalable approach to modernizing insurance operations.

Tangible benefits of modernization

Modernizing insurance operations with Grid Dynamics and Origami Risk delivers measurable advantages across efficiency, customer experience, financial performance, and competitive positioning. By leveraging advanced technologies like AI, automation, and cloud-based systems, insurers can transform their businesses to meet evolving market demands.

Operational efficiency

Modernization enables insurers to optimize processes, reduce costs, and enhance productivity. A McKinsey report indicates that insurers could improve productivity and cut operational expenses by up to 40% over the next decade.¹³

Faster claims processing: Automation reduces processing times from weeks to hours with intelligent routing, real-time tracking, and minimal manual intervention.
Enhanced analytics: Machine learning and predictive modeling improve risk assessment accuracy, enable multi-dimensional analysis, and provide actionable insights.
Cost reduction: Automation and cloud-based systems eliminate redundant processes, optimize resources, and lower infrastructure maintenance expenses.

Customer experience enhancements

Customer expectations are evolving, requiring insurers to deliver faster, more personalized services. McKinsey forecasts that by 2030, claims processing will be the most critical function in insurance, driven by AI-powered digital transformation.¹⁴

Personalized products: AI enables individual risk profiling, tailored pricing, and flexible policy configurations.
Faster services: Instant quotes, automated underwriting, and rapid policy issuance streamline the customer journey.
Improved digital channels: Omnichannel communication, self-service portals, and AI-powered support enhance user experiences.
Real-time updates: Live claim statuses, proactive notifications, and comprehensive dashboards improve transparency and engagement.

Financial and strategic advantages

Modernization transforms technology from a cost center into a strategic asset by breaking the legacy cost cycle. Traditional infrastructures are resource-intensive without delivering proportional value, but modernization changes this equation.

Cost reduction mechanisms: Eliminating legacy maintenance, reducing hardware investments, and adopting cloud-based pay-per-use models lower expenses.
Economic impact: IT budgets can shift toward innovation with predictable expenditures and streamlined ecosystems.
Agility in innovation: Microservices architectures and CI/CD pipelines accelerate product development, testing, and market responsiveness.

Competitive positioning

Modernization equips insurers with advanced capabilities to stay ahead of competitors. It enables organizations to leverage technology as a strategic differentiator in a rapidly evolving market.

Competitive advantages: Advanced analytics, intelligent risk assessment, personalized offerings, and superior customer experiences drive differentiation.
Strategic capabilities: Data-driven decision-making, predictive intelligence, flexible operations, and rapid iteration allow insurers to adapt proactively to market demands.

Closing note

The future of insurance platform modernization is bright, driven by the partnership between Grid Dynamics and Origami Risk. This collaboration brings together deep industry expertise with advanced technological capabilities, enabling insurers to successfully navigate the complexities of modernization. Origami Risk offers a highly configurable, cloud-based SaaS platform that optimizes various aspects of insurance management—from policy and billing to claims administration. The platform is designed to streamline the insurance lifecycle, ensuring insurers can operate more efficiently while maintaining compliance with regulatory requirements.

Grid Dynamics complements Origami Risk’s offerings with cloud computing, data engineering, and advanced analytics expertise. Together, they provide a comprehensive solution that addresses insurers’ immediate needs and positions them for sustainable growth in a competitive market. This partnership empowers insurers to thrive in a rapidly evolving industry by breaking down legacy barriers through innovative technology solutions. As we look ahead, we can anticipate:

More personalized and responsive customer experiences
Enhanced risk assessment and underwriting capabilities
Greater operational efficiencies and cost savings
Increased agility in product development and market responsiveness
Improved compliance and risk management practices

Break free from the legacy system constraints and unlock new possibilities for growth with cloud-native solutions.

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Breaking down legacy barriers: A deep dive into insurance modernization

The legacy system landscape in insurance

The hidden costs of technological stagnation

1. Outdated infrastructure: Operational efficiency trap