The company’s latest research highlights the urgent need for insurers to move away from complex and expensive legacy systems with outdated technology to modern solutions to be more competitive in today’s marketplace.

Toronto, October 3, 2023 /PRNewswire/ – In an ever-evolving and dynamic insurance industry landscape, being agile and adaptable has never been more important to maintain a competitive edge and strong market presence. Growing customer dissatisfaction with outdated engagement strategies is driving change, with modern consumers demanding innovative and advanced solutions that many traditional systems cannot provide. This gap has left insurers significantly losing ground to more nimble competitors who identify and exploit market opportunities more quickly, making speed to market a critical factor for success. To address these challenges, Info-Tech Research Group has published its latest research findings. Modernization of insurance core systemis a comprehensive blueprint designed to help insurers overcome the significant barriers they face when modernizing their technology systems.

“The insurance industry is highly regulated and more complex requirements continue to be added, putting pressure on traditional insurance companies as compliance requirements constantly change.” To tell Ahmed MapalaInformation Technology Research Group Chief Researcher. “Insurers must navigate complex and often contradictory regulatory frameworks across different jurisdictions. New regulatory requirements related to data privacy and security may emerge, and if , will require significant changes to existing policies and procedures. Startups classified as insurtechs and non-traditional insurers in the marketplace are not always subject to the same level of regulatory oversight.”

Info-Tech research explains that the legacy systems used by many insurance companies are complex and expensive to maintain due to outdated hardware, software, and development methodologies. The situation is further complicated by the rapidly shrinking pool of developers skilled in older programming languages ​​and increased reliance on third-party support and outsourcing. The company advises that this set of circumstances requires an urgent transition from these legacy systems to a platform that can meet today’s customer-centric demands and tomorrow’s data-intensive needs. Continuing to rely on legacy systems can be costly and consume a significant portion of an organization’s budget, further highlighting the critical need for urgent modernization within the insurance sector.

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“The pace of digital transformation is likely to accelerate in the coming years.” Mapala explains. ”Legacy technology is an issue and insurers must keep abreast of new technology to remain competitive. Introducing emerging technologies such as automation, artificial intelligence (AI), the Internet of Things (IoT) and blockchain may require significant changes to existing models. ”

Info-Tech’s new blueprint highlights the need for future-oriented technology investments in the insurance sector. Adapting to both market changes and the core requirements arising from the evolving customer experience is paramount. The company recommends that IT leaders in the insurance industry prioritize the following key areas when embarking on upgrading legacy systems:

• Business process: Insurers must significantly improve their business processes and services to meet customer needs. Effective processes give companies a competitive advantage.

• Speed ​​to market: Insurance companies constantly need new products to meet customer expectations. Digital transformation creates an agile platform that increases customer satisfaction.

• Risk mitigation: Legacy systems continue to eat into insurers’ budgets with high maintenance costs, raising questions about their long-term sustainability and the risks they pose to businesses.

• Increased efficiency: Outdated platforms cannot provide the agility and efficiency needed for modern insurance products and services.

• Data-centric: Data defines the future of insurance companies and their products and services. Data silos created by legacy systems endanger the growth and survival of insurance companies.

Modern systems in the insurance industry aren’t just about improving profitability and customer experience. These systems pave the way for innovative growth through the application of the latest technology solutions, speeding up underwriting decisions and claims processing, and ushering in a new era of profit-driven automation. Furthermore, they are scamensuring accurate and consistent decision making backed by well-designed business processes.

To learn more about modernizing insurance industry technology to stay competitive in this digital age, download the complete document. Modernization of insurance core system Blueprint.

For media inquiries on this topic or for timely, exclusive comment Ahmed Mapalacontact our financial services experts. pr@infotech.com.

For information about Info-Tech Research Group or to access the latest research, please visit: infotech.com and connect via linkedin and X.

About Information Technology Research Group

Information Technology Research Group is one of the world’s leading information technology research and advisory firms, serving more than 30,000 IT professionals. The company produces unbiased and relevant research to help CIOs and IT leaders make informed, strategic, and timely decisions. Info-Tech has spent 25 years working closely with IT teams to provide them with everything they need, from practical tools to analyst guidance, to provide organizations with tangible results. We have consistently delivered results.

Media professionals can sign up for unlimited access to research and over 200 IT and industry analysts across IT, HR and software through the company’s Media Insiders program.For access please contact us pr@infotech.com.

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SOURCE Information Technology Research Group