Modernizing Legacy Insurance Systems with Microservices on Guidewire Cloud Platform
DOI:
https://doi.org/10.63282/3050-922X.IJERET-V4I4P109Keywords:
Guidewire Cloud, Insurance Modernization, Microservices Architecture, Policy Administration, Kubernetes, Regulatory ComplianceAbstract
Legacy insurance systems have historically been based on a monolithic architecture and thus, might be inefficient due to the long claims processing time, lack of scalability, significant maintenance costs and a lack of flexibility in changing with a new market demand. In order to deal with these challenges, this paper analyses the modernization of insurance operations through the use of microservices in the Guidewire Cloud Platform. Research uses an analytical and case study research-based approach with support of comparative analyses to underscore the possibilities of insurers to re-architect their policy administration system, claims management and billing systems. The suggested framework is based on the principles of microservices, containerization, Kubernetes-based orchestration, and continuous integration/continuous delivery (CI/CD) pipelines, allowing for higher agility, maintainability, and resilience. According to the findings in the case study, modernization will transform the processing time of claims to 3.8 days as opposed to 12.7 days, the assessment accuracy to 100 percent as compared to 38 percent, and save money spent on infrastructure by 32 percent due to dynamic resource allocation. More so, the pace of software release becomes faster with quarterly releases to every two weeks, and reduced application maintenance workloads by 63%. Such important risk mitigation strategies as phased data migration, zero-trust security, and compliance automation are also discussed in the study. The paper, by comparing Guidewire Cloud against other platforms (AWS, Azure, and on-premise deployments), is able to show the perceived benefits of Guidewire's insurance-focused ecosystem. The results indicate that cloud-native microservices integration is not only beneficial in terms of performance and productivity but also gives insurers an advantage when making future advancements in AI/ML, blockchain-related transparency, and regulation flexibility
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