Opportunity Cost of Retaining Legacy Systems

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Opportunity Cost -- The "cost" of selecting one alternative is the benefit foregone from the next best alternative. While the insurance industry was a leader in adopting technology in the early days of software, it has fallen behind in maintaining the lead. The percentage of companies still using software that is more than 15 years old is higher in insurance than in any other. It was the lack of software vendors supporting the needs of medical professional liability operations that led to the increase in internally developed homegrown systems.