73% of insurance executives are planning to change their core insurance management technology within the next three years, according to a recent report by Novidea.
The report, Scaling for the Future: The State of Insurance Management Platforms 2025-2026, surveyed 200 C-suite insurance leaders worldwide, with its results highlighting the urgent need for technological modernisation in the industry.
According to its findings, 95% of insurance professionals face “significant” challenges with existing legacy systems.
Data-related issues are the most pressing, with data security and privacy cited by 35%, data quality by 33%, high upgrade costs by 32%, maintenance costs by 26%, and integration difficulties by 25%.
Julie Shafiki, CMO at Novidea, said, “The findings of our latest report confirm our thesis that the insurance industry is at a major technological crossroads. While a majority of leaders within the industry recognise the need to modernise and are actively planning for change, they continue to face significant barriers, from concerns about system compatibility to internal resistance.”
Other survey highlights reveal that among those planning to upgrade their technology, 40% are considering a complete “rip and replace”, while 60% favour replacing specific modules. Document management is the most targeted for replacement (31%), followed by contract builder (29%), placing platform (27%) and claims management (27%).
The report also emphasises AI integration, with 71% of respondents saying their platforms enable significant AI benefits, and 28% reporting some benefit. Larger insurers tend to derive greater AI value, particularly in analytics, reporting, and claims tracking, reinforcing the importance of accurate data for strategic decision-making.
Novidea aims to help insurance organisations modernise infrastructure and adopt modular solutions that can be implemented incrementally or via a full system replacement.
The firm’s cloud-native platform supports insurers in data-driven decision-making, process optimisation, and cost reduction.
Shafiki explained, “Our goal at Novidea is to alleviate some of these pressures by providing a cloud-native, end-to-end, open API platform that addresses the most common barriers to transformation and brings value to our customers to grow their business.”
Read the full report from Novidea here.
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