Centric’s Insurance Lead shares his insights on how and why insurers are taking on core system transformation projects
Chad Caldwell, Centric’s National Insurance Practice Lead, recently contributed to an article in ITA Pro, the magazine of the Insurance Technology Association.
In this article entitled Taking the Plunge, the author provides five key lessons insurers and vendors have learned when it comes to complex core system conversion projects.
A snippet of this article:
Across the P&C industry, more insurers are taking on core system implementation projects.
“In the last three to four years, there has been a dramatic shift in the willingness of carriers to take on modernization projects,” says Chad Caldwell, vice president and national insurance practice lead, Centric Consulting. “The commonly cited figure is that 65 to 75 percent of carriers are planning or in the process of some core system conversion, and those percentages hold up among what we’re seeing among our clients, if not even higher.”
A key reason for the change is an increased track record of success. “Frankly, there wasn’t a lot of system transformation happening even happening 10 years ago because insurers were scared of failure,” Caldwell says. “There are at least twice as many successes than failures today, which wasn’t the case 10 years ago.”