‘The industry is caught between digital aspiration and operational reality,’ says chief commercial officer

Despite some 88% of insurers and MGAs rating their digital platforms as “important” or “very important” to their business, only 61% rate their current platform as “good” for meeting functional requirements.

This is according to a new survey from insurance software provider Covernet, released today (18 August 2025), which also revealed that a further four in 10 firms rate their platforms as either “neutral” or “poor”.

Covernet said this indicated strategic focuses that were “misaligned with execution” and pointed towards the operational complexities of “pricing, underwriting, distribution, claims and finance” as reasons why platforms may not be meeting requirements.

It added that “many remain frustrated with their current technology’s ability to deliver”.

The report also highlighted a hunt for competitive advantage as the main reason insurers and MGAs were looking to upgrade their digital systems, having been referenced in 39% of responses.

Customer demand (21%) and cost savings initiatives (15%) were much less commonly cited reasons for undergoing a digital platform upgrade.

Operational reality

Jim Campbell, chief commercial officer at Covernet, said: “The industry is caught between digital aspiration and operational reality. Insurers understand that technology is critical for competitive advantage, but too many are settling for platforms that don’t fully deliver on their business requirements.

“This disconnect suggests many firms are rushing into digital transformation without properly evaluating whether their chosen solutions can actually support their strategic objectives.

“The next phase of digital transformation is about ensuring the platforms insurers choose can genuinely transform their operations rather than simply digitising existing inefficiencies.

“Choosing a core platform is a difficult call and it deserves dedicated attention. If teams don’t fully invest in the process – and for most this isn’t a full-time role – it’s easy to miss what really matters to underwriting performance and customer experience.”

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