According to a recent Forrester Research study, North American insurance carriers spend about 70% of their software budgets on the care and feeding of their core processing applications. Let’s face it, that’s just too much money spent keeping the “lights on” and not enough spent to support IT that introduces better policyholder experiences.
A lot of that operational spend is explained by the industry’s legacy of developing big core applications in-house supported by big IT organizations. But when technology vendors bring up the idea of moving policy admin or billing into the “cloud,” as in Software-as-a-Service (SaaS), carriers typically have the same knee-jerk response, “The economics of SaaS and cloud are unbelievable, but the insurance business is just too complicated for us to consider it.”
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