Customer-centricity is no longer an ideal, but the norm in insurance. Evolving expectations and demands from customers are pressuring incumbents to leverage new technologies to accelerate product cycles while reducing costs and risks. In this competitive landscape, adopting Cloud and automating data migration are absolute necessities for speed and operational efficiency. Core system vendors like Guidewire are now enabling their clients to move their infrastructures to their cloud-supported solution Guidewire Cloud. Yet, this transition is not without its own challenges. Much thought has to be contributed to every step of the endeavor — from figuring out the obstacles that hinder Cloud adoption, to assessing the readiness of your organization – in order to successfully migrate your business to the cloud platform.
A leading multi-line insurer partnered with ValueMomentum to embark on this journey to Guidewire Cloud. VM’s CoreLeverage team helped the client choose the best platform catered to their needs while tackling key challenges during the transition. Here’s an overview of the challenges they encountered and the solutions that were implemented during their Guidewire cloud migration journey:
Use Case: Migration to Guidewire Cloud (SaaS)
The insurer already felt a need to migrate to a cloud solution to support their goals for claims. They looked to ValueMomentum’s CoreLeverage team to understand which platform was best fitting to their business needs. The insurer was running their claims business on the Guidewire ClaimCenter platform.
The business need of migration to SaaS are:
- Agility
- Speed of upgrades
- Security
- Cost saving in new infrastructure
- Innovation in leading industry solutions.
The VM CoreLeverage team identified a software as a service (SaaS) solution, specifically Guidewire Cloud, to be the ideal platform for this insurer. Based on Amazon Web Services (AWS), Guidewire Cloud takes a balanced approach to cloud transmission. It provides the core and model while enabling continuous integration concurrent with the insurer’s growth and transformation.
Challenges Encountered During Guidewire Cloud Migration
Identifying the solution was only the first step. During the process of migration, several issues unfolded that required troubleshooting as a team:
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Performance Issues With Bulk Data
Cloud data as a service gives secure access to all cloud data and feeds enterprise data warehouses to support all downstream integrations on-premise. However, the sheer bulk of data caused performance issues. The insurer needed a tool that could quickly process their legacy data and not hinder their activities done on-premise.
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On-Premise Compatibility
The insurer had been a user of an on-premises DevConnect, a Guidewire integration app store that provides extensions and add-ons for P&C insurers on the on-premises Guidewire ClaimCenter system. Their current DevConnect version, however, was outdated and not compatible with Guidewire Cloud. They needed to invest on a new update to their DevConnect and identify which data could live on-premise or in the Cloud.
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Security Risks With Third Party-Infrastructure
The transition to a third-party infrastructure raised several security risks, namely that of customer personal information. Security patterns needed to be improved; critically, the insurer required secure communication channels between the third-party vendors and the claim center without major dependency on the vendor and exposure to security risks.
Key Technology: Creating Solutions With Automation and Customized Tools
To tackle these challenges, the VM CoreLeverage team provided expertise in key automation tools as well as experience in implementing those tools on the Guidewire platform. The technology included:
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Data Transfer Tool for Downstream Processing
In order to move the data over to the cloud and preserve on-premises reporting, VM utilized two data transfer tools: 1) a read replica service, which helped create a near real-time snapshot of the source database instance as well as access to read-only connection to identify any changes made in the primary instance; and 2) IBM DataStage cloud pak( CP4D), a multi-cloud, AI-powered data integration tool that allows users to design and run tasks to move data. Both automation tools ensured quick and efficient data validation and processing.
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Guidewire DevConnect Capabilities for Data Migration Preparation
The insurer needed to upgrade to the latest version of DevConnect to meet the certification requirements to fully install Guidewire Cloud. This upgrade was completed through VM’s partnership with Guidewire, enabling the insurer to go virtual with the newly upgraded capabilities.
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IBM DataPower Tool for Secure Communications
VM utilized the on-premise IBM DataPower tool—a gateway tool that protects access and control to an organization’s workloads—to secure all communication channels between third party vendors and the claim center for the insurer. This tool facilitated continuous, speedy communication across all channels while adding an extra level of security to help protect customer data.
These tools ensured the insurer’s smooth migration to Cloud as well as setting a secure foundation for continuous communication, quality, and updates.
Transitioning to Cloud must be accompanied by a comprehensive understanding of the insurer’s business objectives and the tactical tools to overcome technical challenges. Automation and customizability go hand in hand—insurers will be at a critical advantage to utilize technology partnerships to pick and match the tools they need to cut down manual processes and maximize adaptability.
Project Value: Accelerate Your Journey to Guidewire Cloud With Data Migration Automation
Cloud migration requires streamlining extreme amounts of legacy data to a manageable access point, and automating that process is key to driving speed in the migration journey. As Guidewire shifts its support to Guidewire Cloud, insurers will need the expertise and the requisite technological tools to transition their on-premises platforms to the cloud with speed and efficiency.
VM’s Guidewire Practice offers upgrade methodologies and solutions to major challenges for insurers interested in moving from on-premise to Guidewire Cloud. By leveraging cloud capabilities like low infrastructure maintenance and cost-delegated ownership, VM can help clients drive business growth using the latest offerings and technologies.
Interested in migrating to Guidewire Cloud? To learn how you can assess, plan, and strategize your Guidewire cloud upgrade journey, check out our Core Upgrade services.