Harnessing AI to accelerate Legacy System Conversions for L&A Insurers

For L&A insurers looking to convert their policy blocks from legacy to newer platforms, data conversion has historically been the longest pole in the tent. The process is typically fraught with challenges such as poor data quality, lack of knowledge about business rules, and resource constraints. Conversion programs often involve tedious analysis of COBOL copybooks and code, making it difficult and inefficient. Complex business rules are intertwined with legacy processes and lack documentation, adding to the complexity. Additionally, finding individuals skilled in legacy programming languages is a significant resource challenge.

According to industry reports, the average duration of a conversion project in the L&A sector ranges from 12 to 24 months, depending on the complexity and scale of the project.

Our Solution: AI-led Conversion Workbench

NTT Data has developed the AI-led Conversion Workbench to streamline and optimize the legacy system conversion process specifically for L&A insurers. Here’s how our innovative solution addresses these key challenges:

• Automation of ETL Processes: Our AI-driven platform automates the extraction, transformation, and loading (ETL) of data, significantly reducing manual labor and processing time. This ensures quality reconciliation and validation processes, minimizing data error risks during migration.
• Enhanced Data Handling: The AI-led Conversion Workbench integrates seamlessly with multiple data systems, facilitating transformations that can be reused across different datasets. This not only improves efficiency but also ensures consistency and accuracy.
• Auditability and Validation: Robust audit features, including audit report export and incremental scorecard generation, enable continuous monitoring and improvement of data migration processes. This ensures compliance and accuracy, providing stakeholders with confidence in the transformation.
• Reduced Complexity and Resource Dependency: By leveraging modern technology, our solution reduces dependency on personnel skilled in legacy technologies. This makes scaling up to large data volumes feasible and cost-effective.
• Business Process Enhancement: The creation of reusable assets and seamless reconciliation integration transforms one-time processes into continuous ones, enhancing overall business efficiency.

Quantifiable Benefits for L&A Insurers

Our AI-led Conversion Workbench has delivered significant benefits:

• The time taken to run the first conversion cycle has been reduced by 30%, leading to shorter conversion phases on large multi-year programs.
• The initial conversion run has seen a 25% increase in accuracy, ensuring more reliable data

Additionally, this platform is fit for purpose for a variety of life and annuity products, making it a versatile solution for the L&A industry.

Driving Transformation with AI

At NTT Data, we are committed to driving transformation through innovative AI solutions. Our AI-led Conversion Workbench is a testament to this commitment, offering a robust and scalable solution to the challenges posed by legacy system conversions for L&A insurers. By automating and optimizing these processes, we empower organizations to focus on what truly matters – delivering value to their customers and staying ahead in the competitive landscape.