The core system of tomorrow needs to be the backbone that will support the digital enterprise of the future.
We often talk about transformation working at two speeds. The initial focus or gear is on incremental change. Incremental change consists of four pillars of foundational technology that create the launch point for true transformational innovation – Core Transformation, Digital Transformation, Customer Engagement, and Transformational Technology. A future-focused core system is required. So where are we along the movement in this direction? We know from tracking core system buying over the past several years that the buying cycle continues for many insurers. With the escalation of digital initiatives, the ability to deploy new products and services in a timely and cost-efficient manner becomes the issue. There must be balance between enterprise software that can scale down to meet the startup product need and the startup solution being able to scale up to support a book of business that “takes off.”
As we look back through the totality of the buying trends, we find that insurers, MGAs, and other buying constituents have continued to pursue foundational transformation through the purchasing of new core capabilities in 2019. The needs vary by size of insurer, the line of business – personal, commercial, or both, the direction that a company has headed in to determine if a full suite is needed or just a single component, and last but not least, if the solution will be deployed in the cloud.
These are all critical areas that we have been tracking at SMA, and they are explored in our latest core system buying report: 2019 P&C Core System Purchasing Trends: Foundational Technology to Fuel the Transformation Journey. SMA showcases the key trends in the purchase of core systems in the North American P&C market.
