The Data Migration Dilemma: Overcoming Challenges and Ensuring Smooth Transitions

In today's data-driven world, data is the lifeblood of any organization. But what happens when your data is trapped in legacy systems, hindering your ability to innovate and grow? 

Insurance businesses need to upgrade their application or systems from time to time to leverage the upcoming technology and stay ahead of the curve. Data migration’s part in adopting new technology cannot be understated. It helps businesses to utilize new technologies, and improve data analytics and reporting, and adopting to a system that is scalable, secure, and compliant with the regulations. Businesses find themselves in the data migration dilemma, wanting the benefits but fearing the risks.  

What makes the insurance business stuck in the data migration dilemma? 

Common Problems that Businesses Face When They are Migrating Data for the First Time 

Disrupting the Operation and Workflow 

Long sessions of migration and system downtime can adversely affect the normal operations of the business, impacting claims processing, customer service, and other critical functions. Even planned migrations can create unexpected downtime and directly affect the business.  

Poor Data Quality 

After migrating to the new system, the businesses could face poor quality in data. It could be a negative PR incident for businesses that face customers. Furthermore, inconsistent or inaccurate data leads to improper analysis and flawed decision-making.  

Security and Compliance 

Data migrations increase vulnerability of the data during the transit and increase susceptibility to unauthorized access if the security measures are not vigorous. Compliance with regulations must also be maintained while transferring data.  

Cost and Resource Constraints 

Data migration projects are expensive and require huge investments in technology and talent, which increases the concern about capitalizing on this investment. 

 Resistance to Change Employees may hesitate to adapt to new technology which can create resistance within organizations. On the other hand, organizational culture can prevent them from adopting new technologies.  Difficulty in Finding the Right Partners While there is a dilemma, finding the right solution provider creates another barrier. Partnering with a business that does not understand your industry poses a substantial risk.  Data Migration: A Catalyst to Business Success The other side of the dilemma is choosing data migration for its benefits. As per a Deloitte survey of 29 Chief Data Officers, 68% aim to improve the use of data and analytics; 61% consider executing data strategy in their top three priorities; and 50% want to enhance better data usage within their organization, which highlights the scope for data migration. Forrester Research claims insights-driven business performs 1.7 times more likely to grow revenue and 1.7 times more likely to reduce cost. A robust platform that supports deriving meaningful insights from data is key to this exponential growth – and the platform’s efficiency is enhanced by strategic data migration.   The Right Time to Migrate Data  Despite the dilemma, business requirements demand transfer of data from one system to another. Some cases are: Updating or replacing the outdated or legacy system with efficient, modern technology. Integrating data after a merger or acquisition. Enhancing security and compliance with new regulations. Improving data accessibility and analysis capabilities. Managing increased data volumes that need a scalable system to handle it efficiently. Launching new systems like software applications, technology, or infrastructure. Restructuring business processes or optimizing workflow. 

Separating data after a de-merger.  Preventing Data Migration Failure – Proactive Measures 83% of data migration projects either fail or exceed their budgets and schedules. The staggering failure rate is due to poor planning, underestimating the risk involved, inadequate testing and validation, lack of expertise, and technological challenges.  Prevention starts with assessing the data to identify duplicate or redundant data and cleanse them to ensure only relevant and accurate data is migrated, which minimizes errors and inconsistencies. Prompt backup of data protects against data loss or corruption. Migrating in increments reduces its impact on operations, addresses issues as they arise, and allows business continuity. After completing the migration, ongoing monitoring addresses post-migration issues.   How Does InsurePro Minimize the Problems that Arises During Migration? At InsurePro, we have designed our approach to eliminate these challenges and make migration smooth, safe, and efficient. We create a rigorous plan that aligns with the client’s needs before starting our migration process. We understand uninterrupted operations are critical for businesses. Our proactive planning helps migrate data without affecting operation and minimizing downtime. Using parallel extraction and continuous real-time sync, we ensure that your systems keep running, even during migration. Data security is a priority for us. We use data masking, transactional data encryption (TDE), and role-based access controls to protect sensitive information. This ensures that only the right people see the right data. Accuracy is guaranteed with in-process quality checks and configuration reviews that match source to destination, preventing data loss or duplication. We provide training and documentation that help teams adapt quickly to the new environment. We also understand that migration is a big investment. But with the results that migration offers like faster processing, simplified data handling, and reduced complexity, businesses see a clear return on investment. With the right blend of people, processes, and technology, success is assured. By overcoming the data migration dilemma, businesses not just move data, but also build a foundation for innovation, growth, and competitive advantage.   To learn more about InsurePro’s data analytics solutions, schedule a brief meeting with our experts today!