SAP, which announced at this month's IASA conference an addition to its insurance core system offerings, released research from the show floor on the pulse of insurance technologists when it comes to core systems replacement strategy.
Fifty-four percent of 203 insurance executives who responded to survey questions from SAP said they "believe the best practice for managing core systems modernization is to find a trusted partner with an integrated solution platform." A further 23% would "consider preserving as much of the legacy systems as possible" and the same percentage prefer "replacing the legacy systems with an in-house build."
"As the insurance industry becomes increasingly commoditized, speed and agility serve as a key competitive advantage for insurers as they look to differentiate themselves and capture more market share," said Robert Cummings, global head of insurance business unit, SAP, in a statement. "Collaboration between IT and business teams along with a trusted enterprise partner that can seamlessly upgrade and modernize core systems is crucial to reach new markets and manage the entire customer life cycle."
Insurers cited the following business drivers for new core systems:
Analytics. Forty-three percent said that analytics are essential for differentiation and competitive advantage.
Mobile. Twenty-two percent picked this option, which includes workflows and apps for employees, agents and customers
Single customer view. The 19% who identified this driver expect a new core system to create "a great customer experience at every touch point across the policy, billing and claims cycle."