From legacy burden to digital resilience: Modernising credit insurance operations in a volatile world

Too many insurers rely on dated, inflexible systems. With the right strategy, modernisation can be targeted and highly effective.

In today’s turbulent global environment, credit insurers and ECAs are under unprecedented pressure. Corporate bankruptcies in the US reached a 14-year high in 2024. EU insolvencies are rising. Sovereign defaults in Ghana, Sri Lanka, and Zambia have sent political risk claims surging. Yet, despite all this, demand for export credit insurance remains strong, with the Berne Union’s own Q1 2025 Business Confidence Index showing rising interest in short-term solutions.

In this context, the real challenge is not just what is happening in the world – it is how prepared we are to respond. The hard truth is, too many of us are trying to compete in a high-speed digital world using infrastructure designed for a slower, simpler era.

Legacy as liability

Behind the scenes, outdated platforms, often built in the 1990s, are still running the show. These systems were not designed for the volume, complexity, or regulatory demands we now face. Maintaining them consumes up to 70% of IT budgets. They are fragile, hard to update, and dependent on the dwindling expertise of a few key individuals.

Worse, many are now unsupported: no security patches, no compliance guarantees. They sit exposed in a world where cyber risk is growing and regulations like DORA require resilience and real-time reporting that legacy simply cannot deliver.

The risks are no longer theoretical. When core systems crash, operations grind to a halt: claims cannot be processed, policies cannot be issued, reporting stalls. One insurer I worked with could not meet new data privacy rules – not because of intent, but because their system could not generate the necessary reports. Manual workarounds became the only option, bringing with them delay, error, and cost.

When technology says ‘no’

Inflexibility is where legacy pain becomes business pain. Product launches stall. Underwriting rules cannot be tweaked quickly. Coverage terms cannot be adjusted mid-cycle without breaking the system.

During COVID and recent geopolitical disruptions, I saw organisations scramble – not due to lack of willpower, but because their tech resisted change. Others could not respond to client requests for digital integration. By the time they said, “not yet”, competitors had already embedded their services in client workflows.

Governance becomes a bottleneck

Modern compliance frameworks like IFRS 17, AML checks, and data privacy laws require precision and transparency. Yet outdated systems create blind spots. Routine reporting becomes a manual fire drill. Exposure assessments turn into days of spreadsheet gymnastics.

One carrier had to rebuild offline workflows every time reporting requirements changed. The result was that risk and compliance became reactive rather than strategic. Regulators are beginning to notice. In some cases, legacy itself is now seen as a compliance risk.

Culture eats strategy (and systems)

Even the best platforms will not deliver if people are not brought along. Organisational friction – low morale, skills gaps, change fatigue – quietly erodes transformation efforts.

Talent shortages are real. Many operations still rely on COBOL experts and Access spreadsheet workarounds. Meanwhile, younger talent walks in expecting APIs and automation – and walks back out when confronted with legacy frustration.

Culture compounds the issue. Staff may complain about inefficiencies, but resist change due to fear or past disappointment. Scepticism sets in and progress slows.

What good looks like

What does resilience actually look like? In short: fewer systems, more visibility, and less friction. Here is a glimpse:

Agility by design: No-code tools and modular platforms allow insurers to configure new products or adjust limits without waiting on IT.

Compliance embedded: Sanctions checks and audit trails are built into the workflow. Reports take minutes, not weeks.

Automation in action: Routine policy approvals are handled by rules engines. Human effort shifts to exception handling and value-added work.

Integrated teams, unified view: Risk, underwriting, and claims access the same data. Collaboration is real-time, not routed through spreadsheets.

Prepared, not reactive: When the next crisis hits, systems respond, instead of stalling. Insurers adjust, adapt, and stay ahead.

A real-world example

A national ECA we worked with started small: one product, one portal. By digitising their SME application process, they slashed turnaround time from 15 days to under ten minutes. Staff effort was cut in half. Maximum coverage increased 40% and reporting accuracy soared.

All of this was achieved without replacing their back-end system. By layering modern workflows and APIs on top of legacy, they proved modernisation could be phased, pragmatic, and effective.

Build resilience by fixing what matters first

Modernisation does not require a big-bang overhaul. The path to resilience is built in phases:

Start small, deliver fast: Target high-friction processes with low-risk pilots. Use the outcomes to build internal momentum.

Integrate first, replace later: Wrap legacy systems in modern APIs. Build muscle before you rebuild core.

Automate where it hurts most: Free up capacity by automating repetitive tasks. Then go deeper.

Invest in people: Involve end users early. Build trust through quick wins. Treat your staff like internal customers.

Make compliance a strength: Structured data and embedded controls turn governance from a pain point into a performance lever.

Transformation begins with leadership

Technology is only part of the equation. The real catalyst for transformation is leadership - of mindset, not just title. It takes courage to face the cost of delay, clarity to articulate the ‘why’, and consistency to follow through when enthusiasm wanes.

Done right, modernisation is not just a systems upgrade – it is an upgrade to how we work, collaborate, and lead. That is the kind of resilience our sector needs – not to merely keep up, but to step up and lead the next era of credit insurance.