The survey found that a staggering 95% of insurance professionals face“significant” challenges with their existing legacy core technology platforms. Data-related issues are the most pressing concerns, with data security and privacy (35%) and data quality (33%) ranking at the top. Other major pain points include high upgrade and maintenance costs (32% and 26%, respectively) and integration difficulties (25%).

Appetite for Change, But Concerns Over Change Management

Despite the challenges, the report indicates a strong appetite for change, with 73% of leaders planning to upgrade their technology within the next three years.

Other highlights of the research include:

• Of the 73% planning to make a change, 40% are considering a total“rip and replace”
• 60% favor a more incremental approach by replacing specific modules
• Document management (31%) emerged as the top module targeted for replacement, followed by contract builder (29%), placing platform (27%), and claims management (27%)
• The biggest barriers to executing change projects are lack of investment in new technologies (27%) and employee resistance to change (23%)
• Nearly all respondents (99%) reported multiple issues stemming from their existing processes, with the most frequently cited problems being analytical reporting and visualization (26%) and claims tracking (26%)

It's worth noting that of the respondents who cited“employee resistance to change” as a top barrier, the majority were executives from small and mid-sized insurance organizations. Only 15% of respondents from companies with more than 5,000 employees chose this answer.

Paving the Way for AI

When asked whether their insurance management platform enables them to utilize the benefits of AI, 71% of respondents said it enables them to benefit significantly, while 28% said they benefit somewhat, and only 1% reported no benefit at all. It's not surprising that larger insurance organizations are deriving greater value from AI capabilities than smaller firms, indicating that the biggest players are leading the way in AI integration. Irrespective of the size of the organization, they all must maintain accurate data

To download a copy of the report, click here.

About Novidea

Novidea is the leading Insurtech provider of a cloud-native, data-driven insurance management system. With its open API architecture, Novidea enables brokers, agents, MGAs, MGUs, and carriers to modernize and manage the customer journey end-to-end and drive growth across the entire insurance distribution lifecycle. Novidea's streamlined and automated platform fully integrates front, middle, and back offices. The Novidea platform boosts operational efficiency while providing a seamless digital experience for team members and customers alike. Insurance businesses benefit from a 360-degree view of customers and policies and can access data and actionable insights anytime, anywhere, and on any device. In 2024, Novidea acquired Docomotion, a leading Document Generation platform. The company currently serves more than 350 customers worldwide.

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CMO
Michelle Barry
Chameleon
[email protected]
Elliot Lane
Fwdconsulting
[email protected]