Modernizing legacy financial systems for strategic advancement

A leading US insurance giant modernized their legacy financial systems through Systech’s strategic reclassification solution, enhancing data accuracy, compliance, and scalability.

BUSINESS NEED 

The client, a prominent player in the global insurance industry, was faced with a critical need to align with evolving financial regulations and business standards. Their primary objective was to seamlessly reclassify and migrate policy data without disrupting ongoing business operations. 

SYSTECH’S DELIVERY 

Tasked with delivering a sophisticated and scalable solution, Systech delivered a strategic data reclassification solution, accurately updating the client’s legacy insurance data across 15 billion records. This comprehensive approach ensured seamless integration of new account rules, enhanced data integrity, and undisrupted system performance. 

OVERVIEW 

This project focused on reclassifying existing insurance policies within a legacy database, with updates and validation of business logic to ensure the data was consistently and accurately reflected throughout the system. With over 15 billion records in the client’s extensive database, the project required careful planning, precise execution, and thorough validation to maintain data integrity and system reliability. 

THE CHALLENGE 

The project faced several key challenges, including processing of over 15 billion records, which required meticulous planning and robust systems. The complexity of replacing thousands of account rules with 3,000 new ones across billions of records added to the difficulty, as did the need to maintain data integrity and accuracy throughout. Navigating the complex legacy system without disrupting operations was essential, as was correctly applying new account rules through a two-layer process. Delta calculations were crucial to ensure discrepancies were identified, all while ensuring minimal disruption to the client’s ongoing operations. 

THE DETAILED SOLUTION PROCESS 

Systech’s approach was methodical, ensuring that each phase of the project was executed with precision: 

Data identification and tagging to locate specific insurance policies within the client’s legacy system that required reclassification. A specialized query was developed using Yellowbrick to precisely tag these policies at a granular level. This step was critical to ensure that the right data was targeted without affecting unrelated records. 

Reclassifying the dimension tables—key components in data systems that store attributes of various data points—ensured that the new classification codes were accurately applied across the entire system, consistently updating all related records. 

Propagation to fact tables followed the updates in the dimension tables. Using Informatica, fact tables were moved to the database schema storing quantitative data for analysis, ensuring that the fact tables maintained consistency and integrity across all data segments. 

A two-layer process was implemented to apply new account rules, replacing 26,000 existing rules with 3,000 new ones. In the first layer, rules were applied in the work monetary table, handling initial financial calculations. In the second layer, rules were applied in the dimension monetary table, ensuring accuracy and consistency across the system. Meticulous validation was done to ensure each rule was correctly applied to the appropriate records. 

Delta calculation to validate the accuracy of the recategorized data, involved comparing them with the previous months’ data to identify any discrepancies. This helped ensure that profit and loss calculations and other financial metrics were accurate, reflecting the changes made during the reclassification. 

Deployment and system validation was the final phase of the solution, which involved deploying the data to the user layer, where the end-users interact with the data. Rigorous validation ensured that changes were accurately implemented and that the system was functioning as expected.  

This solution ensured that the client’s legacy financial systems were modernized with minimal disruption, significantly improving data accuracy, compliance, and operational efficiency. 

THE IMPACT 

The project delivered significant outcomes, enhancing the client’s operational capabilities: 

Strengthened compliance framework through the reclassified account rules ensured that the client’s financial systems were fully aligned with updated regulatory standards. 

Enhanced accuracy and reliability of the client’s data, minimizing the risk of errors in financial reporting, while preserving the integrity of the client’s legacy system, so that day-to-day operations remained uninterrupted. 

The optimized system architecture streamlined data processing, enabling the client to manage large volumes of data more effectively and enhancing overall operational agility. 

Scalable, flexible system, built to accommodate future growth, and integrate new policies and business rules as their needs evolve. The enhanced financial reporting enabled the client to better-informed business insights, equipping them with a robust, scalable infrastructure capable of adapting to future business demands and regulatory changes. 

THE ADDED VALUE 

The project added significant value by future-proofing the client’s system, ensuring scalability and operational continuity while enhancing data accuracy and financial reporting. This empowers the client with strategic flexibility and improved decision-making capabilities for long-term success. 

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