There’s no magic number that tells you it’s time to upgrade your claims management system. But there is a tipping point — a moment when operational pain outweighs the perceived cost of change.
The pain shows up in all the usual places:
- Manual workarounds that waste time and money
- Disjointed data that delays insight
- Expensive software with limited configurability and lackluster support
- Compliance gaps and unchecked risk
- Frustrated customers and underwhelmed leadership
- Systems that just don’t scale — or even integrate
At some point, it becomes clear that the status quo costs more than the solution.
The hidden costs of outdated systems — and unresponsive vendors
Spreadsheets and legacy platforms aren’t just clunky — they’re expensive. Not just in dollars, but in delays, errors, and missed opportunities. Workarounds become standard operating procedure. Reports take so long to generate that they’re old, irrelevant news by the time they reach decision-makers. In some cases it gets so bad that leaders stop asking for insights altogether. They’ve given up.
And it’s not just the software. The hidden costs of poor vendor support — slow implementations, limited configurability, expensive custom programming, and humdrum service — can be crippling.
When your tech partner isn’t keeping pace with your needs, you’re throwing good money after bad.
Customer experience takes a hit
Customers expect real-time updates, fluid workflows, clear communication, and simple self-service tools. But outdated and ill-fitting claims systems make even the basics difficult. Claims drag out. Status updates are too vague to be useful. And, alas, frustration builds, and trust erodes.
This isn’t just an annoyance — it’s a measurable problem. Operational inefficiencies contribute to nearly $140 billion in claims-related leakage and delays across the industry, and 82% of claims still take more than 30 days to process. [1]
Good news: Here’s where purpose-built claims and risk management platforms, like Cloud Claims, shine — streamlining processes from end to end, improving response times, producing insights you can actually use, and fostering outcomes that lead to lower claims costs and fewer claims.
Risk and compliance vulnerabilities rise
Regulations evolve constantly. And unfortunately, homegrown and legacy solutions often leave organizations exposed to audits, fines, and reputational risk.
The risk extends to cybersecurity, too. Research shows that nearly 40% of cyberattacks exploit unpatched or outdated software, making legacy systems an open invitation for data breaches and regulatory penalties [2]
Good news: Cloud Claims, APP Tech’s incident-based claims management solution, is designed for security, to enforce consistency, and to maintain an audit-ready trail — so your team can proactively manage risk and stay compliant.
Outdated systems block growth
As your business grows, your claims system should scale with you. But too often, legacy systems can’t handle rising claim volumes, expanding operations, or the need for real-time data and analytics.
And the cost of maintaining these outdated systems is staggering. Seventy percent of IT budgets in insurance are devoted to legacy system maintenance, consuming resources that could be driving innovation. IT spending in the sector is expected to reach $291 billion in the next year — much of it tied up in outdated infrastructure.[3]
For smaller organizations, the hidden costs are just as damaging. An average SME with 100 users spends more than $92,000 annually maintaining outdated software, through a combination of support expenses, productivity loss, and inefficiencies. Even modest upgrades can yield a full return on investment in under two years.[4]
Good news: Cloud Claims is built to scale — integrating with modern tech stacks and adapting to your ever-shifting needs. Whether you’re adding new lines of business, expanding to new geographies, or simply processing more claims, you’ll have the confidence and flexibility to grow how you like.
The tipping point — when doing nothing is no longer an option
Eventually, the pain of Excel-based systems or software that doesn’t fit your business becomes systemic. Complex claims are getting costlier. Turnover is rising. Compliance concerns keep surfacing. Reports are slow, outdated, or just not very useful.
Your team is relying on green screens while the rest of the industry runs on smartphones.
This isn’t just an IT issue. It’s a strategic imperative. When you reach this point, the real question isn’t whether to invest — it’s whether you can afford not to.
The ROI of doing it right
Cloud Claims delivers measurable impact by smoothing operations and equipping stakeholders to make better decisions across the board. With automated workflows, teams can eliminate repetitive tasks and focus on higher-value work. Real-time reports deliver eye-opening insights that improve oversight and responsiveness. Compliance is strengthened with built-in controls and audit-ready records, reducing risk and administrative burden.
And with faster claims resolution and clearer communication, the customer experience improves dramatically. Cloud Claims isn’t a patch — it’s a performance upgrade, built to support your operation today and evolve with your business as time goes on.
Don’t wait for a crisis
Upgrading your claims and risk systems is a proactive move. It doesn’t have to wait until something breaks. The sooner you act, the more stability, efficiency, and competitive swagger you gain. When the cost of inaction is higher than the cost of change, the choice becomes clear. Make the move to a purpose-built claims management system, and instead of asking yourself, “Should we do this?” you’ll be saying “We should have done this sooner.”
[1] Operational Inefficiencies in Insurance and How Technology Can Fix Them
[2] The Hidden Dangers of Outdated Software: A Cyber Security Perspective
[3] Your Legacy Software is Eating 70% of Your IT Budget – Here’s the Exit Strategy
[4] How Much Is Outdated Software Really Costing You? Invisible Expenses Revealed
