The 2024 Core Systems Purchasing Trends report from ReSource Pro Insights delivers one of the most in-depth analyses available on technology buying behavior across the P&C insurance ecosystem. Drawing insights from 99 new core system deals, the report outlines where carriers, MGAs, and other insurance organizations are prioritizing investments—and why modernization has accelerated more in 2024 than in any previous year.
The findings reveal a market rapidly shifting toward cloud-first architectures, integrated suites, commercial lines expansion, and configurable systems that reduce technical debt. For insurance leaders facing unprecedented competition, regulatory pressure, and shifting talent dynamics, this research provides a clear roadmap for technology decisions that support profitable growth, operational excellence, and long-term resilience.
Challenge
Core system transformation is no longer a back-office upgrade—it is a strategic necessity. Still, carriers and MGAs must navigate a complex set of pressures that complicate purchasing decisions:
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Legacy systems are reaching end-of-life, limiting scalability, slowing product launches, and making digital experience upgrades costly and time-consuming.
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Customers and distribution partners now expect real-time, digital-first engagement, including self-service portals, instant quoting, and omnichannel communication.
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Cybersecurity threats have intensified, with the average breach cost climbing to $4.88M in 2024, making outdated on-premise systems a major liability.
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Talent shortages—especially in core engineering, cloud architecture, and legacy system expertise—delay modernization timelines and increase dependence on vendor support.
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M&A activity, commercial lines growth, and evolving regulations require systems that can flex, adapt, and integrate with a shifting portfolio of products and partners.
These dynamics make technology decisions more consequential than ever. Leaders must balance current operational demands with future innovation capabilities while ensuring investments deliver measurable ROI.
Solution
The industry’s response in 2024 reflects a decisive move toward modernization, standardization, and cloud-native design. Key trends include:
Integrated Core Suites Leading the Market
55% of all deals in 2024 were full-suite purchases, a strong indicator that organizations—especially Tier 4 carriers and MGAs—prefer unified platforms that streamline policy, billing, and claims without the integration overhead of piecemeal systems.
Policy Administration as the Anchor
89% of new deals incorporated policy administration capabilities. As the source of truth for underwriting, rating, and compliance, the policy system remains the lynchpin for digital transformation.
Cloud Adoption Is Nearly Universal
99% of deployments were cloud-based, confirming that on-premise adoption has effectively ended. Most organizations chose:
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AWS (65%) for scalability, flexibility, and broad ecosystem support
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Microsoft Azure (28%) for enterprise alignment, security, and integration with Microsoft stacks
Cloud-native capabilities are now a baseline expectation—not a differentiator.
Commercial Lines Drive Demand
88% of deals supported commercial lines, reflecting industry growth in small business, specialty, and mid-market segments. Modern systems provide automation, workflow orchestration, and embedded analytics needed for complex commercial underwriting and claims.
MGA Modernization Accelerates
With 25 MGA deals—most involving suites or policy-focused platforms—MGAs continue to invest heavily in technology that supports scale, speed, and digital distribution.
Measurable Outcomes
Organizations modernizing core systems report quantifiable improvements, including:
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Faster product launches and reduced time-to-market for new programs
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Improved customer experience through seamless digital channels and self-service functionality
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Lower IT spend by retiring costly on-premise infrastructure
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Stronger analytics, compliance capabilities, and operational visibility
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Enhanced operational resilience through standardized, cloud-hosted environments
Strategic Benefits
Core systems modernization is delivering broader business value:
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Scalability: Supporting rapid growth across both personal and commercial lines.
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Resilience: Cloud-based infrastructure reduces downtime and enhances security posture.
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Innovation: Modern systems increasingly embed AI, ecosystem integrations, and low-code configuration.
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Future-Proofing: A shift to configuration over customization reduces long-term maintenance burden and accelerates upgrades.
Audience
This research serves:
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Retail Agencies seeking enhanced connectivity with carrier systems
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Carriers (all tiers) pursuing modernization—with Tier 4 showing the fastest adoption
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MGAs leveraging tech to differentiate and expand specialty offerings
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Wholesalers evaluating cloud-native solutions to support market expansion
Final Thought
Modernizing core systems is no longer optional—it is the backbone of digital transformation. With near-universal cloud deployment and commercial lines driving investment, organizations that delay modernization risk falling behind technologically and competitively. The market leaders will be those who align their core platform decisions with long-term agility, innovation, and growth.
