At ReSource Pro, we emphasize the significance of digital transformation as a driver of business growth. Our latest research blog, “MGAs and Smaller Carriers Drive Growth in Core System Purchases,” written by Tom Benton, was recently featured by Insurance Canada. The piece underscores this point by examining the crucial role of core systems in modernizing the insurance industry.
Core systems, including policy, billing, and claims solutions, are fundamental for improving efficiency, profitability, and customer experiences in insurance companies. Our research shows that MGAs and smaller carriers are increasingly interested in these upgrades, indicating a growing demand.
The report analyzes core system transactions in 2023, revealing steady market activity and notable growth in sales among MGAs. This uptick isn’t just increased sales of carrier-focused core systems. We also saw strong sales of solutions tailored exclusively for MGAs.
Additionally, Tier 2 deals are on the rise, continuing a trend of increased core system purchases within this buyer category. Carriers transitioning to this tier through mergers, acquisitions, or business expansion are likely driving this growth.
Overall, the research underscores that leading insurance companies, both carriers and MGAs, are investing in core systems. These organizations are looking to enhance market responsiveness and customer service capabilities, solidifying their foundation for true enterprise-wide transformation.
Find more insights in our recently released report, “2023 P&C Core Systems Purchasing Trends.” Advisory clients can access the report here. Please contact the report author if you are interested in a more in-depth conversation on our core deals research.
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