Key highlights of the plan include:
In a groundbreaking study titled "SHUK Core Insurance Systems 2025," BearingPoint, a leading management and technology consultancy, predicts a consolidation of the German insurance market within the next five years. The comprehensive and in-depth study, conducted by Partner Thorsten Vogel, aims to sustainably close existing data gaps in the analysis of the German insurance industry.
The study reveals that 63% of participants see AI-based solutions as a technological trend for core insurance systems, while 91% of insurers surveyed view automation and process efficiency as central future challenges. The steadily increasing efficiency pressure, due to an increased number of claims, is a significant driver of change for insurers.
The transformation of core insurance systems is driven by several key factors. Digitalization and technological advancements, such as the integration of AI, blockchain, and cloud computing, are expected to enhance efficiency, customer experience, and data management. Customer experience and personalization are also crucial, with the need to provide personalized services and real-time engagement to meet evolving customer expectations.
Regulatory changes and compliance are another critical aspect, as insurers adapt to changing regulatory landscapes to maintain market presence. Operational efficiency is being addressed through the implementation of streamlined processes to reduce costs and improve operational agility. Data-driven decision making is also a key driver, with insurers leveraging data analytics to inform business decisions and improve risk assessment.
The study identifies improvements in core processes as the main driver of transformation, with over 80% of insurers planning or having already started initiatives to transform their core insurance systems. Insurers that are actively dealing with the future of their core systems have a focus on efficiency, agility, and the optimal use of data.
Simple integrability and data availability will be key features of future core systems. Established providers are expected to assert themselves and push new, innovative solutions onto the market. In the future, core systems will function as "Systems of Record," providing a stable basis for core processes.
Areas where AI-based solutions are expected to have an impact include claims handling, product configuration, identification of cancellation risks, general case handling, and more. The modernization of core systems is seen as an important foundation for the future orientation of insurers. Efficient process design and faster provision of information to distribution channels will be enabled by future core systems.
The study also highlights weather-related claims events, larger claims amounts, uncertainties on capital markets, and the shortage of skilled personnel as causes for the increased number of claims. The availability of skilled personnel is a significant driver of change for insurers, and a faster time-to-market for new products is another significant driver.
For those interested in the full details of the "Kaleidoscope for Insurance" study, it can be requested. The search results do not provide specific information about the study or the key drivers for the transformation of core insurance systems as per that study. To find such details, it would be best to consult the actual study or related publications from BearingPoint.
The report indicates that AI-based solutions and automation are critical technological trends that insurers are investing in, with 63% of participants seeing AI as a key factor for core insurance systems. Moreover, insurers view regulatory changes and compliance as another critical aspect, highlighting the need for adaptability to maintain market presence.
