Tracking the Progress in Core Systems Replacement: Global Life Edition

by Catherine Stagg-Macey,  Jamie Macgregor, January 17, 2013
Industry Trends


Two years ago, one in three insurers reported being well into the program of change. Today, that number has doubled, with 50% of life/health insurers making significant inroads into their legacy modernisation programs.

Celent tracks the core systems vendor market on an annual basis in all geographies. These reports provide tremendous detail into the features and functions of these engines, as well as vendors’ implementation capabilities. This software market has matured over recent years, and there are more examples of successful implementations of core packages. Celent’s deal trends reports for Europe and North America continue to show positive trends.

In Tracking the Progress in Core Systems Replacement: Global Life Edition, Celent analyses data from 91 life and health insurers. The report provides an update on current and planned experiences with core systems. The report also expands on feedback around the current state of the IT environment, future plans, views on data migration, modernisation preferences, and vendor roles.

“Flexibility is missing from the older core systems, and this places restrictions on what the business is able to execute,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance Group and author of the report. “We have arrived at a point where the majority of insurers have realized that this is no longer good enough to stay in business.”

This report takes a look at the issue of core system replacement from the perspective of the insurers and forms part of an ongoing series (published every two years) exploring the progress insurers are making in this area. This report provides a life/health insurer perspective. There is a companion edition for P&C/general insurance.

This 23-page report contains eleven figures and one table.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary


Report Overview



About the Survey


Measuring the Impact



Two Sides of the Same Problem


The Business Case and True Costs of Core Systems Replacements



In Many Cases, a Valuable Tool



True Costs of Core Replacement Projects


State of Play



Persistent Project Challenges


A Case for Partnerships


Final Thoughts


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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