Service Oriented Architecture (SOA) Modernizes The Legacy World of Insurance

Service Oriented Architecture (SOA) is all about quickly sharing and consolidating data. Today, insurance companies tend to find themselves drowning in an ocean of disparate data replicated across systems, that are in some cases 30 plus years old. There’s no wonder it’s hard, for some, to manage even a simple beneficiary change. It takes an army of developers, network engineers and business analysts just to keep the oars on the boat of these massive legacy systems.

old computer

There is no doubt about it, insurance administration systems are complex and are the backbone of any carrier’s business. When it comes to delivering services in the life insurance industry, being able to share accurate and up-to-date information between various programs is critical. Not only for ensuring that the information being used is current, but also for making a customer’s experience as positive and efficient as possible.

Information Integration
Large applications tend to be information silos. They are big bulky things full to the brim with information. Having big applications that can store a lot of information is a great thing! The problem with them, however, especially in the insurance industry, is that it is difficult at best for these systems to share information well with one another. Integrating the information from one large information silo to another is often very expensive and even then the information is not always accurately integrated completely. Using smaller software services is a way to share information more freely between these large applications. In this way service oriented architecture can help companies dramatically save money, time, and hassle when it comes to bringing data and other platforms together.

Increase Customer Satisfaction
Consumers, agents, and distributors are looking for easier ways to manage the way they interact with insurance companies.   Everything from pre-populating their application to filing claims now needs to be automated. In today’s world of everything Internet those companies who do not automate and meet these expectations will fall further behind. Organizing internal systems in a service oriented architecture makes it simple to exhibit a software’s functions externally. This reduces the rate of customer inquiry by showing them exactly what they need and when they need it. Having such architecture helps the company quickly adapt to customer expectations without the cost and risk associated with monolithic systems.

Event Processing
Besides just being able to communicate and share information with applications, and software internally, service orientated architecture allows your applications and programs to respond to events from other allowed sources. This data sharing occurs in many ways. A simple example to illustrate the point would be an insured’s term policy hits its three year anniversary, a trigger automatically runs a quote for additional insurance and passes that into the marketing automation software where it is in turn added to a lead campaign that notifies the agent of an upsell opportunity. Services like this save countless hours of manual work and missed opportunities that can now generate additional revenue.

Risk Reduction
For insurance companies reducing risk is a primary goal. Managing mortality risk, investment risk, and business risk. Most carrier administration systems are old, based on archaic programming languages and are expensive to maintain. Even though these all have their own risks, for carriers the thought of wholesale replacing a monolithic system can be daunting to the point where nothing is done. A service oriented architecture provides a means to employ componentized mircoservices allowing for smaller projects ultimately ending up to be a full scale legacy system replacement.   Such a strategy dramatically reduces risk and resource constraints while providing a more immediate payoff.

Service orientated architecture makes doing business smoother, more reliable, and more satisfactory to all parties involved. In a field that can get as complicated as life and annuity insurance making the process simpler and more transparent is in a company’s best interests.

Contact us today to learn more about how FAST’s componentized service oriented architecture can help your business stand part from the competition and prepare you for the future.


FAST – Flexible Architecture. Simplified Technology.
Phone: 732-225-0008


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