What happens when your business-critical platform keeps growing, but your technology partner doesn’t?
That’s the situation a state-focused insurance agency faced as it expanded operations for one of the largest government clients in the U.S. The agency managed tens of thousands of policies across property, vehicles, and claims through a custom-built system that had served them for years.
But behind the scenes, cracks had started to show: invoices were going out with errors, rollouts were untested, and support tickets dragged on unresolved. With a new high-stakes policy module on the roadmap, leadership knew they couldn’t afford another misstep and needed a new technology partner.
This case is a vivid example of how custom insurance systems can outgrow their vendors. Thus, we hope that many businesses will find this article helpful.
Signs It Was Time to Move On
So, what were the symptoms indicating the urgent need for a strategic move? In fact, the pressure was building from every direction. First, quality assurance had slipped, and major billing mistakes were making it to production. Then, releases were going live without proper testing, forcing internal staff to review and fix errors manually.
On top of that, the platform itself had become too complex for the vendor to keep up. New requests sat in the backlog while integration efforts stalled. And the agency, already dealing with over 1,000 active client users and integrations with major carriers like Travelers, had no room for delays.
It’s no rocket science to guess that trust had eroded. Internal teams were second-guessing vendor work, logging rework tickets, and preparing workarounds for every new feature deployment. The situation was no longer sustainable, and the leadership decided to make a move.
A Smarter Transition Plan Built for Growth
Rather than rushing into a full rebuild, the agency needed a clear path forward, one that could stabilize its current system while setting the foundation for sustainable growth. Velvetech developed a phased approach that balanced speed, visibility, and long-term value. Here’s how we tackled it:
Rebuilding a Foundation with Less Risk and More Clarity
We began with a structured assessment, reviewing everything from workflows and QA practices to source code and historical support tickets. Needless to say, it all came under a confidentiality agreement. Our goal was simple: pinpoint what was breaking, why it was happening, and how to fix it.
As a result, the findings were presented in a board-ready report, clearly outlining pain points, root causes, and practical recommendations.
Faster Response, Smarter Support
To accelerate results without increasing overhead, Velvetech introduced internal AI-driven tools. These helped the client reduce incident response time, generate better documentation, and surface root issues more quickly. We also laid the foundation for a smart knowledge base so that each fix didn’t mean starting from scratch.
But tools were only part of the solution. The agency needed a team that understood both their domain and their stack.
The Right Expertise, On Day One
We brought direct insurtech experience from work with Lockton, Assurant, and other key players in the P&C insurance space. Our engineers had deep familiarity with platforms like Applied Epic, Power BI, and the broader Microsoft ecosystem, including Azure.
This meant we could engage without a lengthy ramp-up and improve delivery quality from the start. We also introduced structured QA and DevOps practices to eliminate surprise bugs and ensure every release met expectations. Our flexible resourcing model allowed the agency to scale effort month by month, depending on internal demand.
Project Health Check
Learn the actionable steps to keep your software project on the right track, aligned with your initial goals and designated priorities.
From Constant Fixes to Confident Growth
The biggest shift? The agency stopped firefighting and started planning. Instead of hoping each release would hold up, they now had a roadmap, visibility into progress, and the ability to scale confidently without piling up technical debt.
Fundamentally, they gained:
- A clear view of system risks and gaps
- A practical plan for transitioning away from the old vendor
- A scalable, accountable partner with insurance-specific expertise
- Peace of mind knowing that future growth wouldn’t be built on guesswork
Ready to Regain Control?
Your platform might be custom-built, but your risk shouldn’t be. If you’re stuck with a slow-moving vendor, constant QA breakdowns, or support that leaves your internal team doing cleanup, it’s time to take a closer look.
Start with a no-obligation technical assessment. Walk away with clarity, not commitments. Book your platform health check with Velvetech today.
Get the conversation started!
About the author
