An in-depth evaluation carried out by Novidea, a supplier of cloud-based, data-driven insurance coverage administration platforms, discovered 75% of insurance coverage organizations worldwide are gearing as much as embrace new core insurance coverage administration platforms throughout the subsequent two years.

This revelation comes from the findings of a complete report titled “Legacy Out, Digitalization In: The State of Trendy Insurance coverage Applied sciences 2024.” The report is the results of a survey carried out in 2023, involving 330 full-time C-level leaders within the insurance coverage business throughout eight international locations. The survey appeared into the struggles of insurance coverage organizations with getting older, disparate know-how, leaving leaders with the problem to handle, scale, and leverage to maintain up with the fashionable digital transformation.

On common, a company manages six completely different insurance coverage know-how programs, whereas the common age of those programs has been discovered to be a minimum of 5 years. Because of this, leaders have needed to put money into the coaching of their workers to extract probably the most worth from their know-how programs, and the problem is larger with employees working remotely.

“The info reveals that insurance coverage leaders are able to make future-forward selections in regards to the technological shift required to raised meet prospects’ expectations of a contemporary, digital-first expertise,” stated Roi Agababa, CEO of Novidea. “Because the survey reveals, there’s a clear acknowledgment that present programs are getting older, disconnected, and don’t assist at present’s digital calls for.”

Key findings of the report

Agababa famous leaders additionally exhibit optimism almost about their legacy tech, contemplating making upgrades. He sees this to be encouraging because the business heads into the brand new yr.

The report’s key knowledge factors present invaluable insights into the technological challenges confronted by insurance coverage entities:

• A staggering 76% of enterprise insurance coverage organizations with over 5,000 workers handle between 6 and 10 insurance coverage applied sciences or extra
• Roughly 40% of insurance coverage company/dealer administration platforms and coverage administration programs have been in use for five to fifteen years
• Notably, 99% of worldwide insurance coverage organizations have plans to overtake their core know-how programs, with 41% desiring to provoke this improve throughout the subsequent 12 months, and an extra 34% planning modifications by 2025
• Within the intricate regulatory panorama of the US insurance coverage market, lower than 25% of enterprise insurance coverage organizations categorical confidence of their current know-how’s compliance assist, and a considerable 77% discover it useful solely “a few of the time”

When questioned about their major challenges with present know-how programs, insurance coverage leaders pinpointed points equivalent to knowledge high quality (41%), knowledge privateness and safety (35%), and scalability (35%). Notably, CEOs expressed heightened concern about scalability, with 50% figuring out it as a high problem in comparison with 33% for the remainder of the C-suite.

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