The challenge of insurance legacy system integration remains. However, firms prioritise digitisation as the key success driver, according to a survey by insurtech Unqork.
Of the insurers polled, 49% cited insurance legacy system integration as the biggest hurdle in embracing new technologies.
Other technology challenges cited by insurers were speed to market, misalignment between business requirements, and IT delivery.
Driving business forward
Also, 60% of insurers said that they expect digitisation to drive their business forward. Other growth drivers cited were big data, artificial intelligence, robotic process automation, as well as blockchain.
Over two-thirds of insurers said that the greatest opportunity for digitisation was in client onboarding.
Product development, claims, risk management were the other areas, which according to the respondents, could cash in on digitisation.
However, only 40% of insurers said that their company’s technological investments were positively affecting operations.
Unqork CEO and founder Gary Hoberman said: “This survey qualitatively confirms what we’ve seen throughout our careers, that insurers perceive legacy systems as a hurdle to growth and despite the disruptive power of innovations such as AI and blockchain, they are far away from leveraging their potential.
“However, pointing to legacy technologies as a barrier is a myth, based mostly on the fear of accepting sunk costs. Insurers can still progress by refocusing on their competitive advantage – whether that is product design, underwriting, risk management or claims servicing – and grow their business.”