Only six out of 10 companies believe employees are fit to use modern tech

Insurance companies said using multiple systems includes high costs, inefficiency, and time and resource consumption. 

Insurance companies typically use an average of five systems for complex operations like claims, billing, and underwriting. In larger firms with over 5,000 employees, 76% manage 6-10 systems or more, often relying on legacy systems averaging four years in use.

According to Novidea’s The State of Modern Insurance Technologies 2024 report, particularly in agency/broker management and policy administration, 41% have used the same system for 5-15 years.

Handling multiple systems presents significant challenges. Training on numerous systems proves difficult, with only 58% of organizations believing their employees are adequately trained. 

The main issues with multiple systems include high maintenance costs, inefficiency due to various logins, and time and resource consumption. Scalability concerns are also prevalent with current technologies.

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Remarkably, 99% of insurance organizations plan to overhaul their technology, particularly broker/agency management and policy administration systems. Within the next year, 41% anticipate upgrading. 

This move towards modernization, despite concerns about costs, integration, customer adoption, and business disruptions, indicates a recognition that the risks of outdated systems outweigh those of adopting new technologies.

Customer-centricity is crucial in insurance, with 87% of respondents prioritizing customer value highly. While this drives technological upgrades, 38% express concern about customer adoption, causing some hesitation in modernizing their tech infrastructure.