All UK insurers recognise digital platforms as vital to their operations, yet many remain frustrated with their current technology’s ability to deliver, according to new research from Covernet. It’s an interesting point when it comes to platforms; do they deliver when it comes to YOUR business and its unique niche? Here’s the word;
The survey of insurers and MGAs reveals a stark contradiction at the heart of the industry’s digital transformation efforts. Whilst 88% rate digital platform adoption as important or very important to their business, only 61% describe their current technology as good at meeting functional requirements.
The research exposes fundamental tensions in how the industry approaches technology investment. Competitive advantage drives digital transformation for 39% of the respondents, encompassing senior managers among insurers and MGAs. That is more than double those driven to digital transformation by cost savings (15%) or customer demand (21%).
Yet this strategic focus appears misaligned with execution, as 39% of respondents report neutral or poor satisfaction with their platforms’ functionality.
Selecting the right platform is also a tougher decision than it looks. Insurers are weighing core systems that touch pricing, underwriting, distribution, claims and finance; all with long-tail operational consequences. To get full value from any selection, firms need to invest properly in discovery, requirements, proofs-of-concept and change readiness. In reality, that work is rarely anyone’s full-time job – it’s squeezed in alongside BAU, which makes structured evaluation harder and increases the risk of costly compromises later.
Jim Campbell, Chief Commercial Officer at Covernet said:
“The industry is caught between digital aspiration and operational reality. Insurers understand that technology is critical for competitive advantage, but too many are settling for platforms that don’t fully deliver on their business requirements. This disconnect suggests many firms are rushing into digital transformation without properly evaluating whether their chosen solutions can actually support their strategic objectives.
“The next phase of digital transformation is about ensuring the platforms insurers choose can genuinely transform their operations rather than simply digitising existing inefficiencies. Choosing a core platform is a difficult call and it deserves dedicated attention. If teams don’t fully invest in the process – and for most this isn’t a full-time role – it’s easy to miss what really matters to underwriting performance and customer experience.”
The findings highlight a sector in transition, where the urgency to digitise may be outpacing careful platform selection. With 97% of insurers now using digital platforms to some degree, the focus must shift from adoption to optimisation.
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