The insurance industry faces many challenges, such as outdated legacy systems and the need for rapid digital transformation. Recent economic pressures and the accelerating impacts of climate change have further intensified the need for modernization. More than ever, insurers are under pressure to upgrade their core systems. These modernized core systems enable insurers to offer flexible, digitized products that boost system performance, reduce time to market, and improve productivity.

However, in the rapidly evolving business and technology landscape, insurance companies must go beyond mere system upgrades to fully modernize their legacy systems. Traditional systems, while still capable of handling their initial workloads, are increasingly inadequate for meeting contemporary demands for enhanced functionality and faster service delivery. These systems often struggle to incorporate advanced technologies like artificial intelligence (AI), which are essential for real-time decision-making and efficient data processing.

Recognizing these challenges, NTT DATA has developed a comprehensive approach to core modernization that not only addresses the need for technological upgrades but also ensures a smooth transition towards more scalable and industrialized processes. As highlighted in NTT DATA’s new white paper, “Embracing Insurance Core Modernization for Future-Readiness,” this approach is designed to help insurers stay relevant in today's dynamic business environment by leveraging cloud technologies and AI-driven tools.

One key aspect of this transformation is NTT DATA’s Insurance Cloud Migration initiative, which empowers insurers to retain their valuable assets while reducing operating costs. This initiative also allows insurers to harness cloud capabilities for business development, effectively aligning modernization efforts with broader digital transformation goals. NTT DATA’s reusable cloud migration solution is tailored specifically for the insurance industry, providing significant benefits such as cost reduction and acceleration in core system transformation. By integrating advanced assets like automated testing tools, code migration analysis, and AI-enhanced management tools, NTT DATA ensures that the modernization process is both efficient and cost-effective.

The shift towards modernized core systems not only improves operational efficiency but also enables insurers to offer more personalized and integrated insurance solutions. As the white paper details, these advancements are crucial for generating new forms of revenue, whether through adaptive AI, industry-specific cloud solutions, or sustainable business practices. Moreover, the use of Generative AI, composite AI, and hyper-automation further augments human decision-making, leading to improved operational efficiencies across the board.

NTT DATA’s case studies, featured in the white paper, illustrate how this cloud migration strategy has led to measurable improvements in both operational efficiency and cost savings for insurance companies. These examples underscore the importance of aligning modernization efforts with business goals to achieve sustainable growth and innovation.

In summary, core modernization transcends mere technological upgrades; it represents insurers' proactive efforts to embed innovation, agility, and resilience into their fundamental operations. NTT DATA’s approach, as explored in their white paper, provides a roadmap for insurers to not only adapt to the current technological landscape but also to thrive within it, delivering superior customer experiences and maintaining a competitive edge in the market.

Curious about the opportunities, challenges, and trends regarding insurance core modernization? Want to see more examples of successful insurance technology modernization, including use cases from insurers, tech titans, and insurtechs? Or do you want to learn more about NTT DATA’s approach? All research and insights can be found in NTT DATA’s white paper “Embracing Insurance Core Modernization for Future-Readiness.”

Who is NTT DATA?

NTT DATA – a part of NTT Group – is a trusted global innovator of IT and business services headquartered in Tokyo. They help clients transform through consulting, industry solutions, business process services, IT modernization, and managed services. NTT DATA enables clients, as well as society, to move confidently into the digital future. They are committed to their client’s long-term success and combine global reach with local client attention to serve them in over 50 countries.