That’s the word from Covernet, who have surveyed insurers and MGAs;
New research from Covernet has revealed a roadblock for insurers and MGAs – their technology isn’t keeping up with their ambitions.
The survey of insurers and MGAs found that while 86% say scalability is critical for rapid speed-to-market, a staggering 71% cite time-to-market as their biggest IT challenge – almost double the number who are worried about cost (38%).
The gap between ambition and capability is most obvious in product development cycles. Four in ten insurers (40%) are launching new products quarterly or more often, but nearly three-quarters (73%) admit their IT systems can’t scale fast enough to support those launches.
This is compounded by the fact that almost nine in ten insurers (89%) require customised software to deliver their products, a need that’s slowing down deployments and leaving firms frustrated.
The data exposes a clear operational bottleneck. Insurers recognise the strategic importance of rapid product deployment but find their IT infrastructure consistently falling behind market demands. With 68% launching products at least annually, the inability to scale technology quickly represents a significant competitive disadvantage.
Jim Campbell, Chief Commercial Officer at Covernet, said:
“Insurers are stuck in a scaling trap. They know speed-to-market is key, but their infrastructure is holding them back. When 71% of insurers say time-to-market is their number one IT challenge, it’s a clear signal that the current approach just isn’t working.
“The answer isn’t to slow innovation – it’s to change how we think about IT scalability. Insurers need platforms that allow for customisation without creating months-long delays. Otherwise, they risk losing ground to competitors who can move faster.”
Covernet’s research highlights a fundamental clash between commercial ambition and technical capability – and a growing risk that insurers’ infrastructure becomes a barrier to growth in a competitive market.
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