63% of Singapore’s insurance market is set to replace core management systems in 2024, according to a recent global study by Novidea.
The report, Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, highlighted 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 data, which was collected in a 2023 survey of 330 full-time, C-level insurance leaders across eight countries, also revealed that 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.
The complexity of managing these legacy systems is ultimately what is hindering digital transformation efforts across the nation.
Notably, Singaporean insurance leaders are at the forefront of recognising the importance of modern, customer-centric experiences, with 70% prioritising onboarding technology that enhances customer value, compared to the global average of 41%.
Roi Agababa, CEO of Novidea, said, “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. 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.”
The report also highlighted the key challenges that insurance leaders across Singapore are facing. Challenges that these experts noted included data quality (41%), data privacy and security (35%), and scalability (35%).
Read the full release from Novidea here.
To gain access to the report, Legacy Out, Digitalization In: The State of Modern Insurance Technologies 2024, click here.
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