Custom Code  While there will always be a place for custom code in implementations, an overabundance of it makes implementations hard to manage and, more importantly, update.  There also tends to be inadequate documentation, making changes to the system even more difficult and costly.  Salesforce is consistently ranked as a leader in the low-code, no-code movement.  This means Salesforce implementations are faster to get up and running and, even more importantly, easier to maintain over the life of the implementation.  When custom code is required, Salesforce has guardrails and implementation guidelines in place to ensure that custom code will be compatible with future Salesfroce upgrades.  This all helps the insurer avoid falling into the custom code pitfall.  

Refreshing Technology The most common, and impactful, aspect of a Legacy Trap is not refreshing the underlying technology.  For example, many insurers have developed core systems such as Policy Administration Systems (PAS) that may have been extremely successful and leading edge for their time.  However, insurers usually have a very low appetite for continuing to refresh their systems with the latest underlying technology which is why there are still plenty of policy administration systems  out there written in COBOL.  This inability to refresh underlying technology creates an environment that is not only expensive to maintain but limits insruers’ ability to operate in today’s digital environment.  This Legacy Trap is not just an issue for internally developed solutions.  Many vendors do not keep their products up to date with current technology, or require painful and expensive upgrade engagements, effectively pushing the insurer headfirst in the legacy trap.  For a myriad of reasons, most insurers have legacy vendor solutions with outdated technology that are hampering the insurer’s ability to operate effectively.  

When an insurer leverages Salesforce, they benefit from Salesforce’s constant investment in emerging technology along with the automatic upgrades that Salesforce manages for all of its clients.  Instead of worrying about keeping solutions technologically current, insurers only have to decide how they want to leverage their Salesforce implementation to support their business requirements.  

With Salesforce, insurers have two paths.  First, they can extend the investment in legacy systems through a “wrap and renew” process where Salesforce is leveraged in conjunction with legacy systems to give insurers the digital capabilities they need without necessarily replacing existing systems.  Secondly, Salesforce can be leveraged to disaggregate the capabilities within the legacy systems into a new environment or can often replace the legacy systems outright.  How to proceed is flexible and can be based upon business needs, system capabilities and degree of difficulty.  

PS Advisory has chosen Salesforce as the primary solution we focus on due to Salesforce’s ability to help insurers avoid the legacy trap.  With experience in CRM, underwriting, distribution management, marketing and digital transformation, PSA has significant experience in helping insurers re-engineer their business and effectively execute their business strategy.