Openlegacy recently raised 20 million dollars from the Japanese SBI Bank and has started working with the European insurance giant, BNP Paribas-Cardif * Gil Paecht, operations manager in India and in Israel, in a conversation with Insuretech Israel News: Openlegacy is an integrative system that replaces the many layers that have been built on top of the core systems, with a single, simple and fast system
The problem of the legacy systems is one that is characteristic of insurance companies, banks and real companies all over the world – according to Gil Paecht, Openlegacy operations manager in India and in Israel. In a conversation with Insuretech Israel News, insurance companies seeking to transfer their activity from legacy systems to newer systems run into may difficulties in the one-time move to a new computer system. Paecht: “We travel around the world and discover things that we thought no longer existed, and that not only are they still here, but they form the very heart of the system”. Solving this problem is what Openlegacy has set as its goal.
The company recently raised 20 million dollars from the Japanese SBI Bank, which sees it as a strategic investment. This investment joins previous investments in the company, totaling some 50 million dollars and has started working with the European insurance giant, BNP Paribas-Cardif.
Openlegacy was founded by Roi Mor (CTO), from the technical sector, and Romi Stein (CEO), who came from the world of finance. The company’s president is Ron Rabinowitz. The company currently has more than 100 employees and operates branches in the USA, Mexico, Switzerland, Singapore and Hong Kong. Its headquarters, which is where its R&D activity is centered, is in Israel. The company also has activity in India and across Europe.
The company’s clients include leading insurance companies from around the world, including Liberty Mutual, BNP Paribas-Cardif, financial companies such as Citi, FIS and others. In Israel, the company works with half of the country’s insurance companies, and with the country’s biggest bank – Bank HaPoalim.
“The system is an integrative system that replaces that replaces the many layers that have been built on top of the core systems, with a single, simple and fast system”, explains Paecht. According to him, the legacy systems definition has changed over the years. If in the past systems such as Mainframe or AS400 were regarded as legacy systems, today also the SAP or Oracle systems are regarded as Legacy systems.
In order to create for the end customers advanced digital systems such as apps or marketing and sales systems (for agents, for example), these companies need to create layers that link between the core systems and the new systems. “We often run into insurance companies that reject us on grounds that they are replacing their core systems. Five years later, the legacy system is still there. We are not entering a vacuum, but help the existing progress to be far more efficient”.
Companies that are interested in replacing the legacy systems also run into problems, mainly due to the need to carry out the switch on a one-time basis, and transfer in a single operation all of the data accumulated in the old system to the new system. Openlegacy has a solution for these companies as well. The company enables them to set up a new system and accept new businesses in it, with all of the existing businesses continuing to be managed under the legacy system – and linked to the new system via the Openlegacy system. In this manner, the insurance company can transfer the data at its own pace from the legacy system to the new system.
