APAC INSURERS ADOPT MODERN CORE PLATFORMS TO TAP INTO GROWTH - ISG REPORT

KUALA LUMPUR, July 12 (Bernama) -- A new research by Information Services Group (ISG) found many insurance companies in Asia Pacific (APAC) are starting to implement advanced technology platforms to better capture additional business in a fast-growing region for the industry.

The global technology research and advisory firm in the 2024 ISG Provider Lens Insurance Platform Solutions report for APAC says that insurers need modern core platforms to remain competitive.

“Companies are eagerly exploring new systems so they can move away from technology environments they have used for decades,” said ISG partner and regional leader of Asia Pacific, Michael Gale.

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While insurance is a younger and faster-growing industry across APAC than in North America or Europe, its expansion is fastest where insurance markets are least mature, such as in India, Thailand and Malaysia, according to ISG in a statement.

Insurance companies are upgrading systems most rapidly in these markets, seeking to take advantage of double-digit growth rates in some product categories.

The report shows that many insurers in the region are making new technology investments despite strong headwinds, including tight budgets and often weak balance sheets, in which high cost, a wide range of technology choices and the risks of implementing new systems have slowed the process at some companies.

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However, moving from mainframe-based infrastructure to modern digital platforms enables faster time to market and many other benefits, including higher efficiency and scalability, tighter security, better decision-making and improved customer experience.

To get the most benefit from new technologies, especially artificial intelligence platforms that can improve operations and decision-making, many insurers in APAC are recognising the need to modernise their data systems, ISG says.

The report also examines other APAC insurance industry trends, including the growing importance of scalable policy administration systems and the role of low-code/no-code platforms in modernisation projects.

-- BERNAMA