New BOLT Survey Finds Core Systems an Obstacle to Digital Goals
Staff Writer | February 01, 2017
BOLT Solutions announces the results of research conducted on the impact core systems have on P&C insurers’ ability to offer digital shopping and purchasing options to their customers. With respondents including top staff from more than 60 leading P&C carriers nationwide, the survey uncovered that the industry feels it is essential to implement digital capabilities, but core systems are hindering progress.
“Consumers are demanding digital capabilities to research and purchase insurance direct from carriers, but insurers continue to struggle to offer these capabilities,” says Eric Gewirtzman, CEO of BOLT Solutions. “For insurers to continue to grow and retain existing customers, they need a digital distribution platform with a rich market network that seamlessly connects to current back-office systems.”
This positions insurers to leverage investments in existing systems as they prepare to replace core systems, while offering consumers the digital experience they expect. It also provides carriers with access to a rich market network of products they can bundle with their own without taking on additional risk. All of this is possible without ripping out and replacing core systems.
- 88 percent of respondents have seen demand from consumers and customers for digital engagement capabilities.
- 82 percent are not confident in their legacy systems’ ability to support the introduction of digital channels to market and sell their products, resulting in a shocking number of insurers in need of a solution to bring them into the digital age.
- 73 percent are actively researching ways to overcome the hurdles that prevent them from implementing digital capabilities and a third-party digital distribution platform was reported to be a common solution.
- 41 percent implemented a completely new system rather than a third-party distribution platform, but 62 percent of those reported they were only somewhat satisfied.
- 53 percent are interested in a digital distribution solution that offers the ability to participate in a market network where they can bundle their products with those from other insurers to meet more of their customers’ needs, without taking on additional risk.
The survey found the majority of carriers’ core systems are more than 10 years old and insurers are not confident the systems, as they stand, are equipped to transition their company to meet consumer demands for digital engagement. However, carriers are actively pursuing options to offer digital capabilities while overcoming legacy hurdles.
“It’s adapt or be left behind in the P&C insurance industry today. Carriers must offer digital capabilities, yet many incumbents aren’t aware their existing legacy systems are an important building block to help them transition to the digital age,” says Kathleen Garlasco, senior vice president, enterprise marketing, BOLT Solutions.
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