For your insurance business to stay competitive, your core technology should be a strategic asset in addition to being functional. But for many insurers, legacy systems are doing the opposite: draining resources, limiting agility, and slowing innovation. So how can you tell whether your core platform is helping you grow or holding you back? The Hidden Cost of Legacy Systems For years, insurers have relied on heavily customized, on-premise systems to manage policy, billing, and claims operations. While these platforms were once essential, they now come with mounting costs: Expensive maintenance and upgrades Scarcity of skilled IT talent to support outdated infrastructure Incompatibility with modern tools and APIs Data silos that hinder visibility and collaboration Security and compliance risks from unsupported software These challenges don’t just impact IT — they ripple across the business, slowing time to market, increasing operational risk, and limiting the ability to respond to customer needs. If you’ve neglected to maintain your current systems, the costs to upgrade or replace systems can increase exponentially as time goes on. Reframing Core Technology as a Growth Driver Modern insurers are rethinking their approach. Instead of viewing core systems as a sunk cost, they’re investing in platforms that actively support growth, innovation, and resilience. At the center of this shift? Multi-tenant SaaS cloud platforms — purpose-built to deliver speed, scalability, and continuous improvement. These platforms: Significantly reduce the burden of software maintenance Enable rapid deployment and upgrades Support real-time data sharing across departments Scale flexibly with business needs Offer enterprise-grade security and compliance By shifting from fixed infrastructure to flexible, cloud-native systems, insurers can reallocate IT budgets toward innovation instead of upkeep. According to Deloitte, “Innovation investments can allow CIOs to contribute directly to top-line growth. But because today’s innovation investment can become tomorrow’s operational expense, it’s critical to understand in advance the long-term total cost of ownership of investments in innovation.” From Cost Center to Competitive Advantage In a recent IBM report, the real differentiator for core technology is not necessarily the systems themselves, but rather what the insurer can accomplish with them. In addition to costs savings, modern core systems empower insurers to: Launch new products faster and enter new markets with confidence Deliver seamless digital experiences that meet rising customer expectations Leverage AI and analytics to drive smarter underwriting and claims decisions Integrate front- and back-office systems to eliminate silos and improve collaboration With a SaaS model, all tenants benefit from shared innovation. Updates, enhancements, and new features are rolled out continuously, meaning no one is left behind. What to Look for in a Modern Core Platform When evaluating your next core system, prioritize platforms that: Support end-to-end policy and claims automation Offer real-time dashboards and analytics Enable plug-and-play integrations via APIs Scale dynamically to match demand Provide a clear path to digital transformation Your core insurance system should be a catalyst for growth. If your current platform is slowing you down, it may be time to move on and look for a new solution. Want to dive deeper? Download our solution sheet detailing the critical differences between various cloud technologies. Or set up a quick demo with us to learn more about evaluating cloud investments and selecting the right platform.