Revolutionizing Insurance: AI-Driven Modernization

Insurance companies are increasingly looking to modernize their legacy systems, many of which were originally built for long-term policy management. These modernization efforts often face challenges due to the significant costs and duration of the projects. However, DXC Technology is pioneering a solution by employing agentic AI to facilitate gradual modernization, seamlessly integrating intelligence into current operations without overhauling existing infrastructures.

AI-Driven Modernization Solutions

Jenna Colman and Dan Stanovich from DXC Technology underscore the critical role of AI in streamlining complex insurance workloads. At the ServiceNow Knowledge 2026, Colman, who leads the Assure Smart Apps as Global Product Director, and Stanovich, the head of Life Insurance Business Process Services in the Americas, stressed the importance of targeted AI deployment. This strategy allows insurers to modernize their systems without causing large-scale disruptions, essential for regulatory compliance and operational efficiency.

One of the primary obstacles is the burden of outdated IT infrastructures, heavily relying on systems built with COBOL. Colman posits that incremental updates are achievable, enabling insurers to modernize while preserving core systems. Developed in collaboration with ServiceNow, the Assure Smart Apps offer AI-powered solutions to address specific processes independently, minimizing systemic disruptions.

Incremental Improvements with AI

The Assure Smart Apps feature an intelligent orchestration layer that executes complex workflows efficiently. This approach allows insurers to tackle significant challenges individually, achieving quick wins before moving on to further improvements, thereby ensuring continuous enhancement and cumulative value creation.

Within DXC, Assure Smart Apps have optimized claims processing, traditionally a lengthy and error-prone manual task. By automating document handling and fraud detection, claims can now be resolved in just 10 to 15 days, reducing interest costs and speeding up resolutions for policyholders, showcasing efficient risk management.

Proven Results through Customer Zero

DXC employs its Customer Zero approach, rigorously testing solutions internally before market launch to confirm performance and functionality. This practice yields valuable real-world insights and assures that solutions are effective in environments similar to those of their insurance industry clients.

Colman concludes by affirming that AI-driven modernization does not require radical change. The Assure Smart Apps exemplify how integrating with current systems can lead to significant advancements. This approach not only enhances efficiency but also enables insurers to scale operations cost-effectively, promoting business growth.