Monarch Life Insurance Company has chosen technology from enterprise application modernization specialist Micro Focus to move its key application workload from an IT service bureau to an in-house IT system.
With this strategic project expected to go into production during the second quarter of 2007, Monarch Life anticipates a $230,000 savings per year in operating costs.
Monarch Life maintains existing blocks of disability income insurance policies, variable life insurance policies and annuity contracts. The move of its core health and accident and individual disability applications to in-house Windows servers is critical to Monarch Life’s strategic IT plan.
When complete, this will not only reduce overall annual IT costs, but also minimize any exposure associated with outsourcing the environment used to run the applications as the new Windows servers will be fully owned, managed and operated internally.
Minimizing risk and disruption is crucial to the project’s success and Monarch Life said that it will achieve this by re-using existing business logic and preserving its investment in COBOL-based applications and IT development staff.