- Where Insurance & Technology Meet

Digital Transformation Acceleration Relies on Core Systems

New SMA Blog by Karen Furtado, Partner, Strategy Meets Action

In today’s digital-first environment, insurance companies absolutely need state-of-the-art systems to support every aspect of their businesses. These core systems that support policy, billing, and claims functions have been foundational to the digital transformation of insurers and MGAs for years and continue to accelerate their transformation journeys today. The pandemic only elevated the need for companies to provide digital experiences to customers and employees, such as real-time payments, virtual claims submissions, and more. And recent research suggests that this need is influencing how insurers and MGAs are purchasing core systems.

SMA’s new research report, 2021 P&C Core Systems Purchasing Trends: Foundational Technology Continues to Enable Digital Transformation, analyzes core systems deals completed last year from the top solution providers in the market today, focusing on purchases by insurers and MGAs for personal, commercial, and combined personal/commercial lines. Our research has found that the overall buying trends have remained remarkably consistent over the past several years. However, we have observed a significant shift with the number of insurer buyers decreasing alongside a steady increase in MGA buyers of carrier-based core systems. Additionally, it becomes critical that the digital capabilities that are supported by core systems require modern technology that is both cloud-based and API-enabled.

What’s clear is that digital transformation is quickly underway and changing how insurers and MGAs interact with agents, policyholders, and internal constituents. Insurance companies will only continue to rely on core systems to create digital enterprises in the future.

For more information on core systems deals and buying trends in 2021, read SMA’s recently published research report, 2021 P&C Core Systems Purchasing Trends: Foundational Technology Continues to Enable Digital Transformation.

About The Author

Karen Furtado, a Partner at Strategy Meets Action, is a well-known authority on insurance technology and how it fuels transformation within insurance companies. Her focus is helping insurers prepare for the future of the industry through the decisions they make today. Karen’s deep understanding of how to effect change guides insurers in the development and implementation of their transformation roadmaps. Her comprehensive knowledge stretches across core systems, the implications of InsurTech, and enhancing adaptability and flexibility in a changing market. Her commitment to promoting innovation, encouraging the exploration and adoption of new technologies, and developing proactive ways to plan for the future draws those seeking an edge. In a highly competitive world, Karen brings exceptional knowledge and experience to the challenges of connecting solutions to business and IT requirements.

During her career in the insurance industry, Karen has leveraged her business and technical experience to enable insurers to meet a wide variety of challenges. Many insurers have benefited from her advice that spans a broad field of expertise including enterprise application strategies and implementations, the influence of a rapidly changing business and technology landscape, and outsourcing services.

Karen’s opinions on insurance, technology, and transformation are highly regarded and often sought after by the press. She contributes to a number of insurance trade journals and is also a frequent keynote speaker at major industry conferences.

About SMA, a ReSource Pro company

Strategy Meets Action is an industry-leading strategic advisory firm delivering strategic insights, consulting services, and published research to carriers, solution providers, and InsurTech startups. The firm provides insights and guidance on business strategy, digital transformation, core systems and customer experience. Learn more about SMA at

SOURCE: Strategy Meets Action (SMA)