By US Sales, Charles Taylor InsureTech.

In today’s fast-paced insurance landscape, the allure of shiny new technology can be tempting. The promise of modernization often leads organizations to consider a complete overhaul of their core systems—claims, policy administration, and underwriting alike. But before diving headfirst into multimillion-dollar implementations that could take years to bear fruit, it’s worth pausing for thought.

Are we sure that throwing out our existing systems is the best route? With digitalization on the rise and innovative solutions like robotic process automation and microservices making waves, there may be an alternative approach worth exploring: leveraging our current core systems while integrating modern technologies effectively. It’s important to rethink this narrative as you navigate through sales and distribution, claims management, policy workflows, and underwriting processes in a way that maximizes efficiency without sacrificing investment or time.

According to research conducted by Celent and reported in their Dimensions: P&C Insurance IT Pressures & Priorities 2024: North American Edition, 91% of the carriers interviewed stated that growth and distribution are significant (56%) or moderate (35%) for 2023, with 85% stating process optimization/operational efficiencies are significant. Celent stated, “growth is the clear top priority for insurers in 2024, potentially indicating they are optimistic about the current climate and are taking an offensive tack. Operating cost reduction and process optimization remained top of mind for carriers. Notably, operating cost reduction is a much higher priority than IT cost reduction, indicating businesses are seeing the value of IT.”

Instead of a complete overhaul, consider an assessment of your existing infrastructure. Many organizations find that their current systems can integrate with new technologies, such as microservices or digital distribution channels. This approach allows for modernization without the full disruption of a re implementation.

DATA 91% of the carriers interviewed stated that growth and distribution are significant (56%) or moderate (35%) for 2023. 85% state process optimization/operational efficiencies are significant.