75% of insurance organisations will replace core insurance management platforms by 2025, according to a new global report from Novidea.
The report, which is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries, highlighted that this digital transformation is set to be accelerated across the London Market in particular – due to the implementation of Blueprint 2.0.
This is set to mean London brokers will make the switch a year early, in 2024.
Entitled “Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024,” the report delves into the challenges faced by insurance organisations globally and their readiness for the impending digital transformation.
According to the findings, 99% of global insurance organisations have plans to change their core technology systems, with 41% indicating this upgrade within the next 12 months and another 34% by 2025. Challenges identified by insurance leaders include data quality (41%), data privacy and security (35%), and scale (35%).
Notably, only 13% of brokers consider themselves ‘very ready’ to meet the standards required for upcoming Core Data Record (CDR) and Blueprint 2.0 developments.
Roi Agababa, CEO of Novidea, said, “The data shows that insurance leaders are ready to make future-forward decisions about the technological shift required to better meet customers’ expectations of a modern, digital-first experience. As the survey shows, there is a clear acknowledgment that current systems are ageing, disconnected, and do not support today’s digital demands. In the market, there is now a sense of urgency due to the Blueprint 2.0 mandates set for July 2024, which necessitates significant upgrades of legacy insurance tech stacks.”
Other key data points from the report highlight that 76% of enterprise insurance companies with over 5,000 employees are grappling with six to ten or more insurance technologies or more.
Additionally, 41% of broker management platforms and policy administration systems were implemented five to fifteen years ago, indicating the industry’s struggle with aging, disconnected technology.
To access the complete report, titled “Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024,” click here.
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