Seventy-five percent of Insurance organizations worldwide are preparing to implement new core insurance management platforms in the next two years. Thats one of the key findings in a comprehensive new report commissioned by Novidea, creator of the cloud-based, data-driven insurance management platform for brokers, agents, MGAs/MGUs, carriers, and wholesalers.
The report, Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries. The research underscores the struggle insurance organizations face with aging, disparate technology that is difficult to manage, scale, and leverage to meet digital transformation needs. The average organization manages six different insurance technology systems, and the average age of these systems is five years or older. Further, these leaders need help adequately training their employees to extract the most value from their technology systems, especially when staff work 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. As the survey shows, there is a clear acknowledgment that current systems are aging, disconnected, and do not support todays digital demands, said Roi Agababa, CEO of Novidea. At the same time, leaders are optimistic about the future and will be taking steps to make significant upgrades to their legacy tech stacks. They understand the challenges and opportunities at stake. That is encouraging news as the insurance industry heads into 2024.
To gain greater insight into technology usage for insurance providers, Novidea commissioned an international survey of C-level insurance employees, including CEOs, CTOs, CIOs, CFOs, and COOs. Respondents make business decisions for insurance brokers, agencies, and MGAs. Countries included in the research include the United States, the United Kingdom, Singapore, France, Germany, Italy, Spain, and Australia.
Key data points from the report include:
- 76% of enterprise insurance organizations with more than 5k employees are juggling between 6 and 10 insurance technologies or more.
- 41% of insurance agency/broker management platforms and policy administration systems were implemented 5 to 15 years ago.
- Of the surprising 99% of global insurance organizations who said they have plans in place to change their core technology systems, 41% indicated that this upgrade will happen in the next 12 months. Another 34% said they will make technology changes by 2025.
- In the highly regulated insurance market of the U.S., fewer than 25% of enterprise insurance organizations feel their existing technology supports them with compliance, and 77% said it only helps them some of the time.
When asked to identify their top challenges with their current technology systems, insurance leaders cited issues with data quality (41%), data privacy and security (35%), and scale (35%). CEOs, in particular, were more concerned about the ability to scale, with 50% citing scale as a top challenge, compared with 33% for the rest of the C-suite.
To learn more, download the free report here: Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024.
Novidea is the leading Insurtech provider of a cloud-native, data-driven insurance management system. With its open API architecture, Novidea enables brokers, agents, MGAs, and carriers to modernize and manage the customer journey end-to-end and drive growth across the entire insurance distribution lifecycle. Novidea's streamlined and automated platform fully integrates front, middle, and back offices. The Novidea platform boosts operational efficiency while providing a seamless digital experience for team members and customers alike. Insurance businesses benefit from a 360-degree view of customers and policies and can access data and actionable insights anytime, anywhere, and on any device. Novidea supports more than 100 customers across 22 countries.
For more information, please go to: www.novidea.com
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