Hope Is Not a Plan for Insurance IT Leaders
Rob McIsaac | March 24, 2015
As Baby Boomer COBOL programmers increasingly have the opportunity to say “bon voyage” to working 9-5 and retire, some insurance IT executives are having restless nights trying to figure out how they are going to address the resulting brain drain. Not only are insurers losing vast amounts of programming knowledge, but they are losing vital business knowledge as well.
Documentation on aging systems in many cases is more akin to tribal knowledge than a true knowledge management “system”, and the potential for things to go bump in the night increases as these environments face generational transition. For example, one CIO recently shared a story about the transition of responsibilities for running an annual production job from one retiring individual to another programmer. The transition involved, by definition, a year between education and execution. And what was the final result?
A minor error sent an entire production run of annual statements, totaling 400,000 documents, to a single address! Somehow “oops” fails to capture the full magnitude of such an event.
The insurance industry isn’t the only sector trying to figure out what they are going to do next. Banking, retail, manufacturers and even the federal government will be looking to find new sources for COBOL talent as the generational transition accelerates. As of 2015, 10,000 boomers achieve retirement eligibility daily, so the issue won’t resolve itself easily or quickly. This will be the pattern until 2029, so “hope is not a plan” may have never been a more appropriate sentiment.
With such a competitive marketplace to find COBOL programmers what can you do? Three options immediately present themselves:
- Move off big iron platforms dependent on COBOL, Assembler, VSAM and related technologies
- Find COBOL programmers offshore
- Leverage COBOL programs at local universities
For many entities, the first option really isn’t feasible based on economic factors alone. The business case for converting old blocks of business can be weak at best, leading carriers to conclude that these systems will be running for the foreseeable future in tandem with more modern capabilities designed to handle new products, channels, and priorities.
The second and third options, however, can offer some immediate relief for these legacy programming needs. I’m pretty sure most people have a good handle on offshore providers, but some IT executives may not be familiar with the third option.
Currently, I’m on the Advisory Board for the Computer Science and Engineering Department at North Carolina State University which provides some interesting visibility into both the demand and the development of new onshore resources. We are certainly seeing training programs emerge that are intended to restock some of the lost talent in this space. We are also seeing some fascinating collaborations between educational institutions, private enterprises and technology providers as they look to address gaps.
One example of this is a collaboration between IBM, Blue Cross/Blue Shield of South Carolina, and the University of South Carolina. BC/BS has the need, USC has the capacity to train, and IBM has been an active participant in framing the curriculum and capabilities. Other examples are emerging as well, which provide an opportunity to collaborate with either traditional colleges and universities as well as technical schools. Junior/community colleges may also provide some interesting options. We also understand that some companies are reverting to a tried and true technique deployed in the 1960’s: internal development programs to build new skills around aging technologies.
At the end of the day, if the only tool a CIO has in the toolkit is a hammer, every problem looks like a nail. In this case, it is incumbent on CIO’s to develop a broader set of tools that can allow them to creatively and effectively build up the talent pool required to keep aging platforms and systems functional until such time as they can be retired. The reality for many mid-career CIO’s today is that these platforms may still be running after they retire, so considering the options sooner rather than later may minimize pain points.
If you would like to learn more, or share your own experiences in this potentially mission critical area, please feel free to contact me via email.
- Electronic Chat with Larissa Tosch
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Medical Malpractice Insurers Investing in Analytics and Emerging Tech in Face of Market Pressures, Says Novarica
- Insurtech AI Leader Betterview Appoints Dan Shoham, PhD, as Chief Science Officer
- Vermont Mutual Insurance Group Selects One Inc for Digital Payments
- Insurers Embracing Machine Vision for Underwriting and Claims, Says Novarica
- Nationwide partners with Slice Labs to develop on-demand auto insurance for rideshare drivers
- AM Best Requests Comments on Draft Criteria: Scoring and Assessing Innovation
- Majesco Acquires Insurance Software Business in India
- MEMIC Scholarship for Families of Injured Workers Now Accepting Applications
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
There are so many great advances in the area of smart homes and buildings, it makes me wonder what the actual impact has been, or what I might have... READ MORE
This month, the ITA celebrates Insurance Careers Month and encourages carriers, brokers, agents and our industry associations to plan their own... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE