New SMA Blog by Tom Benton, Partner, Strategy Meets Action —
It would be difficult to dispute how critical core systems are in the insurance business – they are the enablers of significant in-and-out interactions and help drive efficiency and profitability for an insurance company. Today, many insurers and MGAs are accelerating their transformational journeys by upgrading their policy, billing, and claims systems. And new research suggests that demand for new core implementations is not slowing down.
A new research report from SMA examines core systems deals completed in 2022 from 18 of the top solution providers in the market today. The transactions span insurers and MGAs and support personal, commercial, and combined personal/commercial lines business. What is clear from the research is that the core systems buying is consistent, which, along with continued deployments across all segments over the past few years, indicates a strong market.
However, a few trends are emerging. The 2022 deals show a growing percentage of Tier 4 insurers and MGAs purchasing core systems, indicating how important digital transformation has become to compete in the P&C market, with more smaller insurers deploying new capabilities. In addition, nearly all deals were deployed in the cloud versus on-premise, signaling a need for modern technology to support core deployments.
As digital transformation continues to drive innovation, we will continue to see investments in core systems. But it is important for buyers to be mindful of business objectives when choosing solutions – the wrong fit can obstruct goals, but the right solution can enable a digital insurance enterprise to reach new heights.
For more information on core systems deals and buying trends in 2022, read SMA’s recently published research report, 2022 P&C Core Systems Purchasing Trends: Insurance Market Dynamics Shift Foundational Technology Needs.
About The Author
Tom Benton, Partner at Strategy Meets Action, a ReSource Pro Company, is an industry thought leader with experience as an insurance CIO and as an industry analyst and consultant. Tom leverages his experience to help insurers prepare for and implement strategic transformation initiatives. Tom also advises insurance technology providers on how to better align with industry needs and trends.
Tom’s passion is to help insurers and their technology providers develop strategic plans to successfully implement innovative solutions for improving customer experience, reducing risks, and increasing operational efficiency. Tom has over 20 years of experience directing successful IT strategies at numerous organizations, including as CIO at an insurance carrier and as CIO / CTO at non-profit organizations. He also has nearly 10 years of experience providing advisory and consulting services to insurers and insurance technology providers, including major core systems vendors, IT services providers, and insurtech startups. Tom’s expertise includes IT capability assessment, IT strategic plan development, transformation preparedness, customer experience, and vendor selection.
Prior to joining Strategy Meets Action, Tom served as VP of Research and Consulting at Novarica, Chief Information Officer at Navy Mutual and CIO/CTO at two major nonprofits in the Washington, DC area. He holds a master’s degree from MIT and a bachelor’s degree from Cornell University.
Tom has contributed to numerous industry reports and insurance publications and has been a frequent speaker at industry conferences and webinars.
About SMA, a ReSource Pro company
At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformational journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry expertise. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs, and vendors in the P&C market. For more information, visit www.strategymeetsaction.com.
About ReSource Pro
ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)