NTT DATA Unveils New White Paper on Future-Readiness in Insurance Core Modernization

Industry Momentum

The insurance industry is at a pivotal moment, facing the dual challenges of outdated legacy systems and the need for rapid digital transformation. The economic fallout from the COVID-19 pandemic and the accelerating impacts of climate change have further intensified the need for modernization. Insurers are now more than ever under pressure to upgrade their core systems to enhance efficiency, reduce costs, and improve customer experiences.

Core modernization involves updating and integrating legacy systems, outdated codes, and old technologies that hinder efficiency and innovation. By innovating products, implementing holistic strategies, and conducting educational campaigns, insurers are actively combating these challenges. Modernized core systems enable insurers to offer flexible, digitized products that boost system performance, reduce time to market, and improve productivity.

NTT DATA Insights

The landscape for core modernization in the insurance sector experienced rapid development last year, and the trajectory for 2024 suggests a continuation of this trend. Insurers are delving into foundation models, intelligent applications, and cloud technologies to provide customers with new ways of value through contextualized experiences, personalized services, and integrated insurance solutions.

Key technologies such as adaptive AI, industry cloud, and sustainable activities are being harnessed to revolutionize the financial model. These technologies can generate new forms of revenue outside traditional core businesses or directly monetize data within regulatory frameworks. Generative AI, composite AI, and hyper-automation are creating the underlying capabilities that insurers need to augment human decision-making and improve operational efficiencies.

"Nowadays, insurance companies face the critical challenge of modernizing their legacy systems to meet contemporary demands for enhanced functionality and faster service delivery. While traditional systems effectively handle their initial workloads, they fall short in incorporating advanced technologies like artificial intelligence (AI) for real-time decision-making and efficient data processing. Insurance Cloud Migration is key to addressing these shortcomings by leveraging cloud capabilities to transform and scale core systems effectively." said Bruno Abril, Head of Insurance in Europe and Latam at NTT DATA.

Conclusions

The shift towards modernized core systems represents a significant paradigm change within the industry, aligning operational practices with broader digital transformation goals. In a world grappling with the profound impacts of climate change and other systemic challenges, the insurance sector's dedication to upgrading its core infrastructure is becoming increasingly critical. Core modernization transcends mere technological upgrades; it signifies insurers' proactive efforts to embed innovation, agility, and resilience into their fundamental operations.

"Through our Insurance Cloud Migration strategy, NTT DATA is committed to empowering insurance companies to not only adapt to the current technological landscape but also to thrive in it, delivering superior customer experiences and maintaining a competitive edge in the market. This initiative highlights the critical importance of aligning cloud migration efforts with business goals to achieve sustainable growth and innovation." affirms Sai Sekar, Head of Global Industries of NTT DATA.

More details, Download the white paper here.

About NTT DATA

NTT DATA is a $30+ billion trusted global innovator of business and technology services. We serve 75% of the Fortune Global 100 and are committed to helping clients innovate, optimize and transform for long-term success. As a Global Top Employer, we have diverse experts in more than 50 countries and a robust partner ecosystem of established and start-up companies. Our services include business and technology consulting, data and artificial intelligence, industry solutions, as well as the development, implementation and management of applications, infrastructure and connectivity. We are also one of the leading providers of digital and AI infrastructure in the world. NTT DATA is part of NTT Group, which invests over $3.6 billion each year in R&D to help organizations and society move confidently and sustainably into the digital future.

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