Across the P&C industry, more insurers are taking on core system implementation projects.
“In the last three to four years, there
has been a dramatic shift in the will-
ingness of carriers to take on modern-
ization projects,” says Chad Caldwell,
vice president and national insurance
practice lead, Centric Consulting. “The
commonly cited figure is
that 65 to 75 percent of
carriers are planning or in
the process of some core
system conversion, and
those percentages hold up
among what we’re seeing
among our clients, if not
A key reason for the
change is an increased
track record of success.
“Frankly, there wasn’t a lot
of system transformation
happening 10 years ago because insurers
were scared of failure,” Caldwell says.
“There are at least twice as many success-
es than failures today, which wasn’t the
“The success rate of conversions is
head and shoulders above where it was
even three or four years ago,” says Chad
Hersh, senior vice president in The Nolan
Company’s insurance prac-
tice. “Since that time, we’ve
gone from seeing primar-
ily small- and mid-sized
carriers having success to
mid-tier companies as well.
Now, you are starting to see
larger carriers implement
systems and not run into big
Part of the reason for
implementation success is
the maturity of the vendor solutions.