Sep 22, 2025
Adacta featured in Versicherungswirtschaft-heute: How to Recognize an Outdated Core System
Legacy core systems remain one of the biggest obstacles for insurers aiming to deliver the seamless, digital-first experiences that today's customers expect. From 24/7 support to app-based services and frictionless interactions across all channels, customer expectations continue to rise. Yet many insurers find themselves constrained by outdated technology that makes innovation slow, costly, and risky.
To address this issue, Michael Breidenband, General Manager Germany at Adacta, contributed an article to Versicherungswirtschaft-heute, one of Germany’s leading insurance publications. In his piece, “Woran man ein veraltetes Kernsystem erkennt” (“How to Recognize an Outdated Core System”), he outlines the warning signs insurers should be aware of and explains why modernization is no longer optional.
The warning signs of outdated core systems
- Escalating costs. Maintaining legacy platforms often consumes up to 70% of insurers’ IT budgets. This leaves fewer resources for innovation, new products, and digital initiatives. Even worse, costs per policy can be more than 40% higher compared to modern systems.
- Compliance and risk exposure. Legacy systems struggle to keep pace with ever-changing regulations and cybersecurity standards. Their silo-based architecture makes updates complex and expensive, while insufficient security features increase the risk of incidents.
- Limited integration and flexibility. Without open APIs and cloud-ready tools, legacy platforms cannot easily connect to new distribution channels or partner ecosystems. This results in slow product launches, inconsistent channel configurations, and limited scalability.
- Customer experience gaps. From inaccurate policy information to slow claims handling, legacy-driven inefficiencies frustrate customers and erode loyalty. Competitors with modern systems can deliver faster, more personalized, and more reliable services.
- Operational inefficiencies. Outdated systems often cause performance bottlenecks, manual workarounds, and rigid processes. They make it challenging to introduce advanced technologies such as AI, predictive analytics, or IoT.
