Emerging Technologies for Core Systems: 2017 Edition

by Craig Beattie, May 16, 2017
Industry Trends
Global

Abstract

The definition of a modern insurance system is changing, and so is the business case.

Celent has released a new report titled Emerging Technologies for Core Systems: 2017 Edition. The report was written by Craig Beattie, a Senior Analyst with Celent’s Insurance practice. 

The definition of modern insurance systems is changing, and so is the business case for them. In this report Celent examines the trends driving the change and how the insurance industry will benefit in the future.

Celent’s landmark 2008 report, The Business Case for Modern Policy Administration Systems, described the benefits of upgrading legacy systems. The benefits covered in the 2008 report still stand, but this report presents new sources of benefits and makes the case for a new modern system.

Seven trends are impacting insurance: connectivity, crowd, data and analytics, automation, smart automation, new development, and changes in the ecosystem.

The greatest source of opportunities is where the trends converge. These intersections are enabling new solutions to old problems and, in some cases, new business models. Three examples would be products enabled for the Internet of Things, adaptive portals, and crowdsourced staff. Newer systems are capable of interacting with these trends and better able to capitalize on them.

“We are at the start of a new phase in insurance core systems similar to the adoption of Java Enterprise Edition and .NET frameworks over a decade ago,” Beattie said. “This time, however, the dominant design has not yet been established and isn’t owned by one or a few parties.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

What Is a Digital Insurer?

2

Trends

4

 

Further Detail

5

How These Trends Are Manifesting in Insurers

8

 

IoT-Enabled Products

9

 

Adaptive Portals

10

 

Crowdsourcing Staff and the Sharing Economy

10

New Benefits Case for New Modern Systems

11

 

Structure of the Business Case

11

Finding a New Modern System

17

 

Moving Forward

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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