2025: A Game Changer for Life & Annuity

This is what we heard in 2024.

Data may be the solution….

#1 leadership concern: Multi-hierarchy data complexity

Digitizing within the constraints of legacy systems has resulted in a siloed digital ecosystem, with gaps across the customer journey. In an effort to address this problem, data has become a key area of focus. Nearly every leader we spoke with was working to aggregate and normalize data across all of their systems of record. Although these efforts have helped to pool the data together, enabling things like improved analytics, it has not become the glue to connect systems together. 

… but its impact is limited without action

100% are addressing data aggregation, 0% have solved process orchestration

Across the industry, there is a growing realization that the data challenge is bigger than aggregation. To digitally operationalize experiences throughout the ecosystem data must be paired with intelligent orchestration. Orchestration that understands things like which systems to trigger for which workflows or which stakeholders need access to which data. 

Legacy systems can’t be the excuse

To digitize a process an average of 5-8 systems of record need to be connected  

Throughout life & annuity’s digital transformation, legacy core systems have been the hurdle to delivering best-in-class experiences. We’ve grown accustomed to working around them, ignoring them or attempting to replace them. Advancements in middleware technology in 2024 has opened the door to the idea of operating in harmony with our systems of record. Early adopters are acknowledging that as more POCs demonstrate middleware abilities to enable a cohesive digital ecosystem, legacy systems can no longer be the excuse for delivering legacy digital experiences.

Tackling problems for today and beyond

Average UI implementation is 18 months, with a shelf life of 3 years

Our industry remains practical in our digital evolution. Leaders are focused on solving specific operational challenges. However many are feeling the stress of addressing mounting challenges in a timely manner. Based on average implementation timelines, by the time a UI launches, it’s time to begin prepping for a refresh.  Due to this, increasingly leaders are seeking solutions to not only address current challenges, but to also enable speed to market and scaling for future initiatives. 

With a growing number of viable solutions available to address the themes above, we anticipate that 2025 will be a pivotal year for life & annuity. Leaders who successfully address data aggregation paired with process orchestration across their ecosystem, will advance significantly and at a much faster pace than their peers. Something that we believe will further widen the technological maturity gap between carriers. 

In 2025, we look forward to working with our carrier partners to address their key operational challenges.