More than three-quarters of life and P&C insurers’ core information technology systems remain homegrown, according to a new report.
Insurance Global Operations (IGO) announced this this finding in research focused on core insurance processing systems in the US. Two hundred P&C and Group Life carriers were surveyed via phone interviews with questions focused on numbers, satisfaction levels, and ages of existing claims and policy administration systems, along with system and organizational challenges and planned initiatives.
A total of 123 P&C carriers and 77 Group Life carriers participated in the survey, which was performed by an independent third-party market research organization. IGO chose to survey both P&C and Group Life carriers to validate its assumption that satisfaction levels, challenges, and initiatives were similar between the market segments — even given the differing lines of business, existing core systems, and functionality and processing needs.
Although carriers have made heavy investments in core legacy replacement initiatives over the past decade, the research results show a continued heavy reliance on in-house developed systems, with Group Life carriers reporting more than 75 percent of core systems as in-house/homegrown, compared to P&C carriers at over 55 percent. Other survey results were relatively consistent between the P&C and Group Life carrier segments.
Read the full report here.