Reaching ‘Go Live’ is Only Halfway: Why Reinsurance Modernisation Plans MUST Account for More to Secure True ROI - and Three Ways to Make It Happen
I’ve sat in countless steering committees where the entire focus is fixed on one thing: the 'go-live' date. It is almost always treated as the finish line. The key goal in any modernisation project. The part where everyone can finally breathe a sigh of relief.
And I’m very sorry, but this is just not the reality of things. Deployment is only the halfway point…
The real test of a platform's resilience and value happens on day two, when the ribbon-cutting is over, and the daily grind begins.
I frequently see reinsurers struggle with this transition, so I understand it; I really do. I observe situations where, months after a major tech rollout, the claims or accounting teams are still overwhelmed. The system is technically 'live', but business operations are not improving. Why does this happen? Because the project plan accounted for the build, but it completely missed the margin needed for adoption friction, ongoing maintenance, and daily support.
A new system delivered without a post-implementation plan doesn't create the efficiency you are looking for.
This lack of foresight is particularly risky right now. We are well into the AI age, and modern tech architecture operates very differently from the static systems of the past. It’s no longer just about upfront capital expenditure. It is about dynamic run-costs, API consumption fees, and continuous model maintenance.
I see a lot of leadership teams genuinely surprised by the costs once an AI-driven platform hits PROD. Makes sense that one would be shocked, especially if you’ve left cost governance and maintenance strategies to be figured out after deployment! Yes, we need to be thinking about these parameters and planning for them long before we deliver the software.
So, how do we shift the mindset?
Resilient project delivery means engineering 'run-phase margin' well before launch day. Here are three points that can be factored into transformation programmes:
1. Operational Capacity
Do not just run a single training session and leave the business to it. Build buffer time into the post-launch phase. Frontline teams need dedicated, ongoing support layers as they adapt their daily workflows to the new technology.
2. Cost Governance
Set strict spend boundaries for AI and dynamic tools during the design phase. You must understand the ongoing maintenance costs and consumption fees before the system touches a live environment.
3. The Shift to BAU (Business as Usual)
Define exactly what happens when the dedicated project team scales down. Who owns the continuous optimisation of the platform? Who manages the daily support tickets? There must be a clear, fully resourced handover from 'hypercare' to standard operations.
ROI isn't realised the moment a platform goes live. It’s achieved when the teams are thriving within it weeks, months, and years later. Time to stop planning solely for the delivery, and start planning for the reality that follows, I’d say.
If you’d like to read more on modernisation of reinsurance systems and processes, visit my website for a range of resources on just this: https://www.buondrius.com/resources
Or, if you would like to talk to me directly about your reinsurance modernisation plan, email me sven@buondrius.com