INSURANCE

Legacy Modernization & Data Platform

Complete modernization of a 25-year-old policy management system while maintaining regulatory compliance and zero data loss.

The Challenge

A mid-market insurance carrier was running its entire policy management operation on a COBOL-based mainframe system built in 1998. The system managed 800K+ active policies and $2B in annual premiums — it was mission-critical and deeply embedded in every business process. The three remaining developers who understood the COBOL codebase were approaching retirement. New regulatory requirements demanded capabilities the mainframe couldn't support. The carrier had been told by two previous vendors that modernization would take 3+ years and cost $40M+.

Our Approach

Fleet Studio conducted a FRETA assessment that revealed the previous estimates were inflated because they assumed a full rewrite. Our analysis showed that 60% of the business logic could be extracted and re-implemented as modern services, while the remaining 40% (mostly batch processing and regulatory calculations) could be wrapped and migrated incrementally. We designed a 12-month phased approach that would deliver value at each stage.

The Solution

Modern Policy Management Platform

Built a modern policy management platform on .NET Core with event-sourced architecture

Data Migration Strategy

Designed a data migration strategy that moved 25 years of policy data (800K+ records) with full audit trail preservation

Strangler Fig Pattern

Implemented a strangler fig pattern with an API gateway routing traffic between old and new systems

Automated Compliance Testing

Created automated regulatory compliance testing that validated every policy calculation against the mainframe

Real-Time Data Platform

Built a real-time data platform (Snowflake) that unified policy, claims, and actuarial data for the first time

Parallel-Run Testing

Established parallel-run testing for 3 months before any traffic was cut over

The Results

Zero

Data loss across 800K+ policy records and 25 years of history

55%

Infrastructure cost reduction ($8M annual savings)

12 months

Time to complete (vs. 36+ month estimates from competitors)

3 weeks

New product launch time (reduced from 6 months)

Real-time

Actuarial analysis enabled for the first time via unified data platform

Key Takeaways

Legacy modernization doesn't always mean full rewrite

The assessment that determines what to rewrite vs. wrap is worth its weight in gold. A rigorous analysis showed we could modernize 60% while safely wrapping the rest — a completely different (and faster) approach than the previous estimates.

Automated compliance testing against the existing system was the key risk mitigation strategy

Every calculation in the new system was tested against the mainframe to ensure equivalence. This gave regulators, auditors, and the business confidence that no calculation logic was lost.

The parallel-run period built confidence with regulators, auditors, and the business

Running both systems simultaneously for 3 months, comparing results daily, proved the new system was production-ready. This de-risked the cutover and got buy-in from every stakeholder.

Unified data was the unexpected hero

The business didn't know what it was missing until it had it. A unified data platform that tied together policy, claims, and actuarial data unlocked analytical capabilities that became a competitive advantage.

Ready to modernize your legacy systems?

If you're running mission-critical systems on aging technology, a proper assessment can change everything. Let's discuss your modernization challenges, identify the optimal strategy (rewrite vs. wrap vs. migrate), and outline a path to a modern, efficient platform.