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April 07 2021 | Karen Furtado

During 2020, there was much uncertainty in the industry on how we would move forward on the mission-critical decisions that needed to be made around core systems. There were endless discussions on how COVID-19 would impact insurers’ ability to make core buying decisions. And what have we determined? The digital era has truly arrived, and digital transformation across the world has only accelerated. For insurers, the digital era requires future-focused core systems that will play a critical role in enabling digital interactions, not just for today but for tomorrow as well. And the buying cycle of new core systems continues as insurers are in various stages of digital transformation in their interactions with policyholders, agents, and the support of their internal resources. This new digital era has also accelerated the need for new products and services that support real time interactions, usage-based insurance, and data from IoT/sensors, etc.

2020 Core DealsA new SMA research report, 2020 P&C Core System Purchasing Trends: Foundational Technology Fueling Digital Transformation, identifies the specific trends that have shaped the core system digital journeys of many insurers. We have looked back through the totality of the buying trends of 2020 and we find that insurers, MGAs, and other buying constituents have continued to pursue foundational transformation through the purchasing of new core systems. Certainly, the needs vary by the size of insurer, lines of business needing support, and direction the company is headed from a technology standpoint, but what is clear is that solutions are almost universally being deployed in the cloud – over 90% of all decisions were cloud-based.

Core system projects are challenging, and there is no way around it. But they are also the foundation for enabling digital transformation. Reflect and consider how you are positioned today and for the next ten years. Many of these systems are targeted to last much longer than ten years, so ensure that you are in the best position to move forward with the right foundational technology. It will be a true enabler for your business – today and tomorrow.

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To learn more, please contact:
Karen Furtado
Strategy Meets Action, a ReSource Pro company