Jan 24, 2024

63% of Singapore insurance market to replace core management systems in 2024 – global research by Novidea reveals

50% of respondents in Singapore have not upgraded core management platforms in 5-10 years, and are upgrading now to better meet customers’ expectations and stay competitive

24 January, 2024 – In Singapore, 63% of insurance respondents expect to make a change to their core insurance management platforms by the end of 2024, compared to 41% globally – one of several key findings in a comprehensive new global report commissioned by Novidea, creator of the cloud-based, data-driven insurance management platform for brokers, agents, MGAs/MGUs, carriers, and wholesalers.

The report, Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, is based on data collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries. The research underscores the struggle insurance organisations face with ageing, disparate technology that is difficult to manage, scale, and leverage in order to meet digital transformation needs. The average organisation manages six different insurance technology systems, and the average age of these systems is five years or older. Further, these C-level insurance leaders need help adequately training their employees to extract the most value from their technology systems, especially when staff work remotely.

“The data shows that insurance leaders in Singapore are ready to make future-forward decisions about the technological shift required to better meet customers’ expectations of a modern, digital-first experience to stay competitive. This is why we launched in Southeast Asia late last year, to support this market transformation,” said Roi Agababa, CEO of Novidea. “Our existing market-leading insurance customers in Singapore have already taken steps to replace their legacy tech stacks, and the survey results indicate that the majority of the market will be mobilising digital transformation this year.”

To gain greater insight into technology usage for insurance providers, Novidea commissioned an international survey of C-level insurance employees, including CEOs, CTOs, CIOs, CFOs, and COOs. Respondents make business decisions for insurance brokers, agencies, and MGAs. Countries included in the research include the United States, the United Kingdom, Singapore, France, Germany, Italy, Spain, and Australia.

Key data points from the report include:

  • Respondents stated that Singapore has traditionally been under-served by technology, and organisations in the region are looking to turn this around and provide true value to the customer with their technology investments
  • Respondents from Singapore are placing a heavy emphasis on onboarding customer-centric technology, 70% compared with 41% globally
  • By 2025, 75% of insurance organisations worldwide are preparing to implement new core insurance management platforms
  • 76% of enterprise insurance organisations with more than 5k employees are juggling between 6-10 insurance technologies or more
  • 41% of insurance management platforms were implemented 5-15 years ago

When asked to identify their top challenges with their current technology systems, insurance leaders cited issues with data quality (41%), data privacy and security (35%), and scale (35%). CEOs in particular were more concerned about the ability to scale, with 50% citing scale as a top challenge, compared with 33% for the rest of the C-suite.

To learn more, download the complementary report here: Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024.