In a global report commissioned by Novidea, the digital transformation of the insurance industry takes center stage, revealing that 75% of insurance organisations worldwide are set to replace their core insurance management platforms by 2025.
However, London Market brokers are accelerating their upgrade timeline to 2024, driven by the imminent arrival of Blueprint 2.0.
The comprehensive report, titled “Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024,” is based on a 2023 survey of 330 C-level insurance leaders across eight countries.
It sheds light on the challenges faced by the industry in dealing with aging and disparate technology, with only 13% of brokers feeling ‘very ready’ to meet the standards for upcoming Core Data Record (CDR) and Blueprint 2.0 developments.
A staggering 75% of insurance organisations worldwide are preparing to implement new core insurance management platforms within the next two years, indicating a widespread commitment to digital transformation.
In a notable acceleration, London Market brokers are hastening their upgrades to 2024, aligning with the arrival of Blueprint 2.0, a crucial industry development.
However, the report underscores a significant readiness gap, with only 13% of brokers feeling adequately prepared for the impending Core Data Record (CDR) and Blueprint 2.0 developments.
Technological challenges loom large, with insurance organisations grappling with aging and disconnected systems, managing an average of six different insurance technology platforms, each five years or older.
The urgency to upgrade is propelled by the impending mandates of Blueprint 2.0, scheduled for July 2024, necessitating substantial overhauls of legacy insurance technology stacks.
Roi Agababa, CEO of Novidea, emphasized the industry’s acknowledgment of the need for a technological shift to meet modern, digital-first customer expectations. The urgency is further heightened by the recognition that existing systems are aging, disconnected, and inadequate for current digital demands.
Among the challenges highlighted by insurance leaders, data quality (41%), data privacy and security (35%), and scale (35%) were prominently mentioned. CEOs, in particular, expressed heightened concern about scalability, with 50% identifying it as a top challenge.
The report also revealed that 94.8% of respondents considered it ‘important’ or ‘very important’ to grow their distribution paths through portals or APIs, showcasing the industry’s keen focus on enhancing digital capabilities.
