PriyaPatel
TLDR:
- 75% of insurance organizations are preparing to implement new core insurance management platforms in the next two years
- Currently, only 13% of brokers say they are ‘very ready’ for upcoming regulatory changes
- Insurance organizations struggle with outdated technology systems and insufficient employee training
According to a global report commissioned by Novidea, insurance organizations are finally ready to undergo digital transformation. The report reveals that 75% of insurance organizations worldwide are preparing to implement new core insurance management platforms in the next two years. In the London Market, this timeframe is being accelerated to 2024 due to the arrival of Blueprint 2.0. However, currently, only 13% of brokers say they are ‘very ready’ to meet the standards needed to match new regulation and requirements surrounding upcoming Core Data Record (CDR) and Blueprint 2.0 developments.
The report, titled “Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024,” is based on a survey conducted in 2023 of 330 full-time C-level insurance leaders across eight countries. The research highlights the challenges insurance organizations face with outdated and disconnected technology systems that are difficult to scale and leverage for digital transformation. The average organization manages six different insurance technology systems, and the average age of these systems is five years or older. Additionally, leaders struggle to adequately train their employees to extract the most value from their technology systems, especially when employees work remotely.
Novidea CEO Roi Agababa stated that insurance leaders are ready to make future-forward decisions about technology shifts. The survey results show a clear acknowledgment that current systems are aging, disconnected, and unable to support modern digital demands. There is a sense of urgency in the market due to the Blueprint 2.0 mandates set for July 2024, which require significant upgrades of legacy insurance tech stacks. The survey aimed to gain greater insight into technology usage for insurance providers by surveying C-level insurance employees, including CEOs, CTOs, CIOs, CFOs, and COOs, in various countries.
Key findings from the report include:
- 76% of enterprise insurance organizations with more than 5,000 employees are juggling between 6-10 insurance technologies or more
- 41% of broker management platforms and policy administration systems were implemented 5-15 years ago
- 99% of global insurance organizations have plans in place to upgrade their core technology systems, with 41% indicating that this upgrade will occur in the next 12 months
- 94.8% of respondents believe it is important to be able to grow their distribution paths via portals or APIs
Insurance leaders identified data quality, data privacy and security, and scale as the top challenges with their current technology systems. CEOs, in particular, were more concerned about the ability to scale compared to the rest of the C-suite.
