Majority of insurance coverage organizations contemplating tech upgrades

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 inside the subsequent two years.

This revelation comes from the findings of a complete report titled “Legacy Out, Digitalization In: The State of Fashionable 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 nations. The survey appeared into the struggles of insurance coverage organizations with getting old, disparate expertise, leaving leaders with the problem to handle, scale, and leverage to maintain up with the trendy digital transformation.

On common, a corporation manages six completely different insurance coverage expertise methods, whereas the common age of those methods has been discovered to be a minimum of 5 years. In consequence, leaders have needed to put money into the coaching of their staff to extract essentially the most worth from their expertise methods, and the problem is bigger with workers working remotely.

“The information reveals that insurance coverage leaders are able to make future-forward choices in regards to the technological shift required to higher meet prospects’ expectations of a contemporary, digital-first expertise,” mentioned Roi Agababa, CEO of Novidea. “Because the survey reveals, there’s a clear acknowledgment that present methods are getting old, disconnected, and don’t assist right now’s digital calls for.”

Key findings of the report

Agababa famous leaders additionally exhibit optimism as regards to their legacy tech, contemplating making upgrades. He sees this to be encouraging because the business heads into the brand new 12 months.

The report’s key information 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 staff handle between 6 and 10 insurance coverage applied sciences or extra
• Roughly 40% of insurance coverage company/dealer administration platforms and coverage administration methods have been in use for five to fifteen years
• Notably, 99% of world insurance coverage organizations have plans to overtake their core expertise methods, with 41% desiring to provoke this improve inside the subsequent 12 months, and a further 34% planning adjustments by 2025
• Within the intricate regulatory panorama of the US insurance coverage market, lower than 25% of enterprise insurance coverage organizations specific confidence of their current expertise’s compliance assist, and a considerable 77% discover it useful solely “a few of the time”

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

Have any ideas about these new findings? Go away a remark beneath.