💡 “We Cut Costs & Went Agile—Here’s How” – Pekin Insurance Transformation Story wso2con2025
AI Summary
Summary of Video - Company Resilience in 2023 and 2024
- Background: 2023 was marked by unprecedented financial losses for the company, attributed to severe weather events and rising operational costs.
- 28 billion-dollar weather-related catastrophes in the U.S.
- Significant impacts on automotive and property damages due to hail and inflation.
- Financial Impact:
- Recorded a net loss of $170 million, the largest in company history.
- Early recognition of financial trouble in Q2 2023 due to escalating storm-related losses.
- Strategic Response:
- Transitioned to W2 platform to improve risk posture and reduce expenses.
- Focused on enhancing quality, simplifying processes, and maintaining the platform.
- Invested in training for WSO2 software engineers to ensure a successful migration.
- Advice:
- Emphasized the importance of not lifting and shifting flawed architecture into new systems; advised redesign and rearchitecture.
- Outcome:
- In 2024, the company reported a net income of 11.2 million, marking its most profitable year in nearly 20 years.
- Successfully transformed the company by reducing risk concentration and maximizing expense savings.