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.
This blog entry has been reposted with permission from SMA.
