Three-quarters of insurance organizations will replace insurance management platforms by 2025: Novidea

Constrained by ageing technology, London Market brokers will upgrade their core technologies in 2024 to comply with CDR and Blueprint 2.0 regulations

London, UK (Jan. 30, 2024) – Three-quarters (75%) of insurance organisations worldwide are preparing to implement new core insurance management platforms in the next two years. In the London market, this timeframe is being accelerated to 2024 due to the arrival of Blueprint 2.0 – one of several key findings in a comprehensive new global report commissioned by Novidea, creator of the cloud-based, data-driven insurance management platform for brokers, agents, MGAs/MGUs, carriers, and wholesalers.

Currently, just 13% of UK brokers say they are ‘very ready’ to meet the standards needed to match new regulation and requirements surrounding upcoming Core Data Record (CDR) and Blueprint 2.0 developments.

The report, Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries. The research underscores the struggle insurance organisations face with ageing, disparate technology that is difficult to manage, scale, and leverage to meet digital transformation needs. The average organisation manages six different insurance technology systems, and the average age of these systems is five years or older. Further, these leaders need help adequately training their employees to extract the most value from their technology systems, especially when staff work remotely.

“The data shows that insurance leaders are ready to make future-forward decisions about the technological shift required to better meet customers’ expectations of a modern, digital-first experience. As the survey shows, there is a clear acknowledgment that current systems are ageing, disconnected, and do not support today’s digital demands,” said Roi Agababa, CEO of Novidea. “In the market, there is now a sense of urgency due to the Blueprint 2.0 mandates set for July 2024, which necessitates significant upgrades of legacy insurance tech stacks.”

To gain greater insight into technology usage for insurance providers, Novidea commissioned an international survey of C-level insurance employees, including CEOs, CTOs, CIOs, CFOs, and COOs. Respondents make business decisions for insurance brokers, MGAs, wholesalers, Lloyd’s Managing Agents, London Market Brokers, and more. Countries included in the research include the United States, the United Kingdom, Singapore, France, Germany, Italy, Spain, and Australia.

Key data points from the report include:

• By 2025, 75% of insurance organisations worldwide will be preparing to implement new core insurance management platforms
• 76% of enterprise insurance organisations with more than 5k employees are juggling between 6-10 insurance technologies or more
• 41% of broker management platforms and policy administration systems were implemented 5-15 years ago
• Of the surprising 99% of global insurance organisations who said they have plans in place to change their core technology systems, 41% indicated that this upgrade will happen in the next 12 months. Another 34% said they will make technology changes by 2025
• 8% said it was important or very important to be able to grow their distribution paths via portals or APIs

When asked to identify their top challenges with their current technology systems, insurance leaders cited issues with data quality (41%), data privacy and security (35%), and scale (35%). CEOs in particular were more concerned about the ability to scale, with 50% citing scale as a top challenge, compared with 33% for the rest of the C-suite.

To learn more, download the complementary report here: Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024.

About Novidea

Novidea is the leading Insurtech provider of a cloud-native, data-driven insurance management system. Using an open API architecture, Novidea’s software platform enables brokers, agents, MGAs, and carriers to modernize and manage the customer insurance journey, end-to-end, and drive growth across the entire insurance distribution lifecycle. The Novidea platform, built to leverage the power of Salesforce’s Big Technology, provides a complete ecosystem spanning every aspect of an insurance business, including a 360-degree view of the customer and all stakeholders, enabling full integration between customer-facing policy transactions and the middle and back offices. Brokers, agencies, and MGAs extract more value from their customer and policy data with actionable intelligence from any device, anywhere. Novidea supports more than 100 customers across 22 countries. For more information, visit novidea.com.

Source: Novidea

Tags: core systems, Core Systems Modernization, data, legacy system replacement, legacy systems, Novidea, United Kingdom (UK)