Are Mainframe-Based Core Insurance Systems On the Road to Oblivion?

Celent analysts discuss the future of the mainframe in insurance

New York, NY (Sept. 11, 2015) – In the report Mainframe-Based Core Insurance Systems: On the Road to Oblivion?, Celent analysts discuss the history of technology in the insurance industry and the changes needed for the future. Using a creative metaphor, the authors note the parallels to the changes in the design and construction of automobiles.

Key research questions:

  • How did the automobile industry evolve?
  • Why is this a meaningful parallel to the insurance software industry?
  • What does the future hold?

The report focuses on both the power provided by the mainframe and how these environments are not well positioned for the future. The report discusses the stages of evolution and how the industry must change its direction in technology to continue to both compete and serve the needs of their customers.

“Our industry’s reliance on the mainframe is inhibiting our ability to provide sales and services in the method required by our customers,” says Tom Scales, a research director with Celent’s Insurance practice and coauthor of the report. “We are well behind other financial services industries.”

“The opportunity is there for our industry, and entrants are challenging the entrenched competitors,” says James O’Neill, a senior analyst with Celent’s Banking practice and coauthor of the report. “The parallels to banking are huge, and it is clear that insurance is behind.”

Automobile Body Installed On A Chassis
Automobile Body Installed On A Chassis (Library of Congress Prints and Photographs Collection)

Source: Library of Congress Prints and Photographs Collection

Purchase the complete report from Celent. This 34-page report contains 9 figures.

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies (NYSE: MMC).

Source: Celent