Insurer CGU will look to replace its 32-year-old core policy maintenance system (PMS) in the coming year as it embarks on a new three-year growth plan.
PMS was implemented in 1981 as an off-the-shelf package but has been modified significantly over the years.
It is used by 10,000 staff and partners in CGU’s core general insurance business. CGU runs separate core systems for its workers’ compensation and professional risk business lines.
Users access PMS directly or through a range of bespoke front-end systems, including business intelligence and reporting tools and the insurer’s partner portal, CGU Connect.
PMS’s successor, CUDOS, will be built on CGU’s existing Insure/90 (I90) platform with a service-oriented architecture.
CGU chief information officer Ian Frew told iTnews the insurer would replace PMS with CUDOS from mid-2014.
“Development is underway to replace PMS with a new core insurance system and distribution front end,” Frew said.
“The new environment – known as CUDOS – will be built on the I90 platform and utilise a modularised approach connected via a services layer.
“This will allow us to distribute products through our partners in a flexible and cost-effective manner.”
In an investor presentation last month, CGU chief executive officer Peter Hamer said the insurer was on track in its five-year ‘oneCGU’ transformation project, which aimed to introduce a simplified operating model by this year.
OneCGU was expected to save the insurer $25 million pre-tax in the 2013 financial year and result in a total of 600 job cuts in the three years to 2015.
The program introduced a new Guidewire claims platform and a consolidated Salesforce.com customer relationship management system for its retail, corporate and workers compensation arms last year.
“CGU has a significant investment program to upgrade core technology and create more flexible and cost-effective systems,” Hamer said.
“Technology investment will help address margin drag of legacy systems. [We have an] opportunity to drive improved margin through system consolidation and proactive lifecycle management.”
Hamer said CGU would work on “more aspirational goals” in its new three-year strategy to 2016, which would focus on creating competitive advantage through partnerships and service improvements.