Now is the time for core insurance system change, says analyst

The time for UK insurers to replace core systems has arrived, according to Novarica’s new associate research director Catherine Stagg-Macey.

The former head of Celent’s European practice claims many UK insurance CIOs already feel ‘maxed out’ in regards to their capacity for change. However, the need for digital transformation is not going away any time soon and is likely to remain for a number of years according to Stagg-Macey.

She added that focus on the more hyped areas of technology, such as social media and Big Data, may now have to wait until changes to core systems have been implemented.

“This theme of digital transformation persists in the UK as it does for much of the global insurance market,” said Stagg-Macey. “The time of core system replacement has arrived and is here to stay for several years. This isn’t the cool and sexy stuff. This is the mundane but necessary and complex task of using technology to expand the reach and performance of the insurer. The time for legacy is over.”

She added: “All the major insurers are invested in this with many focused initially on the claims area. By my count, the 50% of the top 20 insurers have made their choice of core systems vendor.”