As a pension company, SPP Pension & Försäkring AB (SPP) operates in a business of high complexity involving low frequency of interactions with long-lasting customers. Back in 2016, SPP recognized that its strategic growth plan required becoming a digital front-runner in their industry. The Swedish insurer decided to fully review its existing operating model and the technology involved and identified major issues to address to meet its strategic business objectives.
This report from Celent*, describes the SPP’s legacy conversion project called Future Core. It draws out the reasons that led the Swedish insurer to embark on this transformation journey. It also describes the objective for system rationalization, the implementation and migration approach, the results derived from the project, and finally the lessons learned for other life and pension insurers.
Based on our experience on this topic and the SPP case study, the following observations can be drawn:
- Insurers tackle the legacy challenge mainly to eliminate burning platforms that typically leverage obsolete technologies and that are no longer supported by human resources having the required skills.
- Many insurers believe there are intangible benefits in legacy transformation projects including business process automation, improved user interface, easier and faster launch of new business models and products, incident reduction, and easier employee training.
- With its Future Core project, SPP rationalized several core and supporting systems onto a few strategic core insurance systems.
- SPP is now seen as a digital pioneer and leader in Sweden thanks to its new scalable operational platform enabling intuitive digital interactions with customers and partners.
This report about the SPP Future Core project is particularly interesting for life and pension insurance companies that are still hesitating to embark on an ambitious legacy and ecosystem transformation journey involving decommissioning old systems and converting policies to new target core insurance systems. Of course, the journey is long and the transformation can be risky, but the SPP case demonstrates that there are clear and tangible benefits down the road.
Download the report and take part of the main lessons any life and pension insurers can derive from the insurer’s experience.
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*Celent, Future Core – The SPP Pension & Försäkring AB Legacy Conversion, 2021