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 throughout the subsequent two years.

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

On common, a company manages six totally different insurance coverage expertise techniques, whereas the common age of those techniques has been discovered to be at the very least 5 years. As a consequence, leaders have needed to spend money on the coaching of their staff to extract essentially the most worth from their expertise techniques, and the problem is larger with employees working remotely.

“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,” stated Roi Agababa, CEO of Novidea. “As the survey shows, there is a clear acknowledgment that current systems are aging, disconnected, and do not support today’s digital demands.”

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 knowledge factors present useful 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
• Approximately 40% of insurance coverage company/dealer administration platforms and coverage administration techniques have been in use for five to fifteen years
• Notably, 99% of worldwide insurance coverage organizations have plans to overtake their core expertise techniques, with 41% aspiring to provoke this improve throughout the subsequent 12 months, and a further 34% planning adjustments by 2025
• In the intricate regulatory panorama of the US insurance coverage market, lower than 25% of enterprise insurance coverage organizations categorical confidence of their present expertise’s compliance help, and a considerable 77% discover it useful solely “some of the time”

When questioned about their major challenges with present expertise techniques, insurance coverage leaders pinpointed points reminiscent of 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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