Insurance companies face a continuing battle trying to keep enterprise software up to date. Companies can either upgrade to the latest release every year or so, which can pose a long and risky project for the IT staff, or they can do nothing and risk falling behind on system security, regulatory compliance and usability enhancements.

For most insurers, software upgrades are highly visible projects with many touch points. A relatively straightforward upgrade can affect multiple lines of business and numerous downstream systems.

"The longer a company waits to upgrade their software, the more complex and challenging the upgrade can become," said Bob Evans, property and casualty systems architect for Computer Sciences Corp. "Unfortunately, too many insurers fall so far behind that the prospect of ever becoming current is out of reach. Essentially, the code is so outdated and heavily modified that it becomes obsolete."

Agile Approach to Upgrades

A growing number of insurers working with CSC have found a way to turn the traditional upgrade process on its head. These companies are receiving continuous updates as they become available rather than waiting for the next annual release, which typically funnels hundreds of requests and requirements into one large delivery.

"The continuous delivery approach is based on proven, agile software development methods," Mr. Evans said. "We're taking it to large-scale insurance applications that had a very different development model. Instead of a waterfall delivering huge amounts of code all at once, we're providing a steady stream of updates."

With most companies running heavily modified versions of the same software, vendors must typically develop many unique versions of the same release simultaneously. Each customer then initiates a complicated implementation project to work hundreds of system enhancements into its unique base code. These customizations prevent across-the-board installation of software upgrades.

But software has changed. Most business rules are externalized and completely configurable, rendering the majority of customized code modifications unnecessary.

"There are variances, of course, but the elements to compose an insurance process are becoming fairly universal," Mr. Evans said. "If one insurer needs to change a system, we've found that other organizations on the same system will benefit from that change also. We incorporate those types of modifications into one version of the base code that benefits all of the users."

If additional modifications are necessary, there are new ways to attach them outside of the base code, which remains consistent across all installations and makes it easier to update.

More than 200 insurers routinely submit software enhancements as part of the Innovation Community program at CSC. With CSC assuring quality and maintaining the code in the base system, these companies no longer need to manage complex coding modifications in-house.

Up and Running, Up-to-Date

Continuous delivery is also a key strategy in the implementation of new software. CSC clients receive continuous updates throughout the conversion process, keeping them current with the latest features and enhancements during the rollout.

One of the contributors to and early adopters of the continuous delivery process is North Carolina Farm Bureau Mutual Insurance Co. NCFB is also in the process of transitioning to Exceed C.0, the base version for continuous delivery.

"We have been incorporating the continuous releases throughout the project, so we will be in a very good position to leverage the newest functionality immediately," said Linda Squires, NCFB senior executive. "This process has put our company in a very advantageous position. We will go live and not have to immediately catch up with releases available since the beginning of the project. Prior to the continuous delivery process, we would already be months behind in versions or enhancements available." IF

James Hurley is a senior architect in the property and casualty insurance division of Computer Sciences Corp. in Blythewood, S.C.