Tracking Progress in Core Systems Replacement: Global P&C Edition

by Catherine Stagg-Macey, December 21, 2012
Industry Trends
Global

Abstract

Four years ago, one in four insurers reported being well into the program of change. Today, that number has doubled, with over 50% of insurers making significant inroads into their legacy modernisation program.

Celent tracks the core systems vendor market on an annual basis in all geographies. These reports provide tremendous detail into the features and functions of these engines, as well as vendors’ implementation capabilities. This software market has matured over recent years, and there are more examples of successful implementations of core packages. Celent’s deal trends reports for Europe and North America continue to show positive deal trends.

In Tracking Progress in Core Systems Replacement: Global P&C Edition, Celent analyses data from 141 P&C/general insurers. The report provides an update on current and planned experiences with core systems. The report also expands on feedback around the current state of the IT environment, future plans, modernisation plans and role of partners.

“Flexibility is missing from the older core systems, and this places restrictions on what the business is able to execute,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance Group and author of the report. “We have arrived at a point where the majority of insurers have realized that this is no longer good enough to stay in business.”

This report takes a look at the issue of core system replacement from the perspective of the insurers and forms part of an ongoing series (published every two years) exploring the progress insurers are making in this area. This report provides a P&C/general insurer perspective. There is a companion edition for life/health and annuity insurance.

This 24-page report contains 11 figures and one table.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Report Overview

3

 

About the Survey

3

Measuring the Impact

5

 

Two Sides of the Same Problem

6

The Business Case and True Costs of Core System Programs

8

 

In Many Cases, a Valuable Tool

8

 

True Costs of Core Replacement Projects

9

State of Play

12

 

Persistent Project Challenges

12

A Case for Partnerships

15

Final Thoughts

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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