How does P&C core platform buying activity in 2023 compare to prior years?

This is an update to Coretech Insight’s review of public coretech deals, which now includes 290 public announcements from 2015 through 2023 Q3.

After a slow start in early 2023, public deals dropped significantly in May. Deal volumes reached a new low in Q2 as buyers paused or shifted away from innovation toward safe bets for legacy modernization. 2023 may see the lowest number of new deals for all years in this review.

Highlands, NC and Seattle, WA (September 12, 2023) — Coretech Insight, an independent advisory firm serving insurers and coretech solution providers, today welcomes Steve Leigh to its professional services team. Steve brings invaluable industry experience and expands Coretech Insight insurance service offerings into the Life and Health insurance segments.

When insurance leaders consider a new cloud agile platform to bring a product to market, they face a critical question: Is the investment worth it?

Coretech Insight modeled three scenarios to quantify the business value of speed-to-market. The benefits were compelling.

However, what if things didn’t go as planned?

We used What-If scenarios to measure the impact of unanticipated costs, new resource requirements, and delays – common challenges with coretech – on the benefits of speed-to-market.

Last December, I found myself stranded on the side of a dark highway in Northeast Georgia.

What could have been an emergency turned into an opportunity to test predictions I had published in the past when “Insurance 2020” was the distant future.

The results were not what I expected.

How does P&C core platform buying activity in 2023 compare to prior years?

This is a quarterly update to Coretech Insight’s ongoing review of public coretech deals, which now incorporates 277 public announcements from 2015 through the first quarter of 2023.

After a slow start, demand returned to normal levels during the first quarter of 2023. However, some market leaders have been noticeably absent.

How did 2022 P&C core platform buying activity compare to prior years?

This is an update to our 11/23/22 article on public coretech deals. Our findings below incorporate press releases through the end of 2022.

We reviewed 262 press releases announcing new core platform selections from 1/1/2015 through 12/31/2022. While there were fewer deals, 2022 saw a continuation of earlier trends with shifts in buyers, objectives, market leaders, and platform types.

How did 2022 P&C core platform buying activity compare to prior years?

We reviewed 251 press releases announcing new platform selections from 2015 through 10/31/2022. Market activity has rebounded from 2020. However, there have been shifts in buyers, objectives, and the types of platforms they are selecting.

New market opportunities
require speed and agility.

Speed and agility can require
a significant investment in new tech.

This leads insurance leaders
to a critical question:

“Is the investment worth it?”

How does scope impact P&C core system implementation timeframes?

We address this question and map the results of four implementation patterns P&C insurers use to manage scope and achieve faster core system go-lives.

We set out to address this question by reviewing hundreds of press releases from over three dozen core system vendors and their 600+ US and Canadian P&C insurance customers. These releases contained selection dates and subsequent go-live dates for 61 implementations with P&C insurance carriers.

We’ve mapped our findings by Tier, duration, core modules, and deployment type. Use this map to understand norms for other P&C insurers of your size and help validate your initial estimates. For key takeaways from our analysis and answers for your own implementation, read on.

Use these approaches to focus on business value and accelerate your P&C core platform implementation:

1. Adopt a policy of zero customization (zero custom development).

2. Move the platform into production as quickly as possible with its base capabilities.

3. Explore additional configuration after deployment.

Use these criteria to narrow your platform selection process to a manageable number of vendors:

1. Supported lines of business (LOBs)

2. Breadth of platform capabilities

3. Client size & type

4. Customers in production

5. Vendor employee count

In the market for a new P&C core platform? Or, are you simply curious about “who’s out there” these days? It can be challenging to find this information.

We’d like to help – check out our inaugural blog post introducing the Coretech Insight Solutions Directory.