In P&C insurance, where speed, accuracy, and customer experience are critical, subpar software can quietly drain millions from a carrier’s bottom line. At Next Level Solutions, we see it all the time: outdated, inefficient systems eating away at productivity, increasing risk, frustrating customers, and holding back innovation.
The numbers are staggering.
The Real Cost of Poor Software
According to the Consortium for Information & Software Quality (CISQ), U.S. businesses lost $2.41 trillion in 2022 due to poor software quality—$1.52 trillion of that from accumulated technical debt. (CISQ Report)
Downtime alone can be devastating:
- 91% of mid-to-large enterprises report downtime costs over $300,000 per hour.
- Inefficient workflows can cost more than $57,000 in lost productivity per day. (Vision Point Systems)
And it’s not just downtime: 69% of workers waste a full hour each day switching between poorly integrated applications. That’s six weeks per employee, per year, spent navigating inefficiencies instead of delivering value. (Pendo.io)
For insurers, the long-term math is even more alarming:
- Over 15 years, maintaining a legacy policy administration system can cost $2.16 billion, compared to $16.3 million for a modern system—a potential $2.14 billion in savings. (Spec India)
- Carriers with legacy systems spend an average of $500,000 more per year on IT staff just to keep the lights on.
How NLS Helps Carriers Stop the Bleed
At Next Level Solutions, we specialize in turning these losses into opportunities for growth by tackling the root causes of technology inefficiency. Here’s how we do it:
- Strategic Modernization Roadmaps
We start by mapping out where your systems are costing you money—whether that’s in downtime, maintenance, manual workarounds, or customer churn. Then we build a phased modernization plan that prioritizes the highest-impact areas first, so you see ROI quickly without disrupting core operations.
- Duck Creek OnDemand Expertise
Our deep experience with Duck Creek OnDemand (DCOD) means we can guide carriers through cloud migrations that reduce IT overhead, accelerate updates, and enhance customer-facing features, all without the heavy lifting falling entirely on internal teams.
- Process and Workflow Optimization
We don’t just “lift and shift.” We analyze your current workflows, identify bottlenecks, and design process improvements so your technology works with your teams, not against them. The result: higher productivity, faster turnaround times, and happier employees.
- Data-Driven Decision-Making
Guessing doesn’t cut it anymore. We implement metrics and reporting that help you track efficiency gains, customer satisfaction, and revenue impact so modernization decisions are based on measurable results, not gut instinct.
- Long-Term Partnership
Technology isn’t “set it and forget it.” We work alongside carriers well beyond go-live, ensuring systems stay optimized, security is maintained, and new opportunities for improvement are acted on quickly.
- How Better QA Protects Profits and Performance
Defects that slip into production don’t just frustrate customers—they cost carriers time, money, and credibility. We embed QA throughout the development lifecycle, combining automated and manual testing to catch issues early, reduce rework, and shorten release cycles. This proactive approach ensures your software is reliable from day one, safeguards your bottom line, and delivers the consistent performance your customers expect.
The Bottom Line
Poor software isn’t just an IT problem, it’s a business problem. It leads to:
- $300K+ per hour in downtime losses
- $600B+ annually in defect-related costs
- 6 weeks per employee per year wasted in inefficient workflows
- $500K/year in extra IT spend
- Billions in lost opportunity cost over the long term
The carriers that will thrive in the next decade are the ones making intentional, data-driven technology decisions now. At Next Level Solutions, we help you stop the financial drain, replace it with strategic investment, and position your business for scalable, sustainable growth.
If your software is slowing you down, frustrating your customers, or limiting your growth, let’s talk. The cost of standing still is far greater than the cost of moving forward.