Winning with Core Transformation: Pathways to Enhanced Value and Efficiency

India’s Insurance sector has seen rapid digitization over the last decade, however, innovations in product constructs, onset of AI/ GenAI, cloud computing, and digitalization, now place a “once-in-a-lifetime” pressure to innovate. As insurers go down on this path, their efforts are often being materially bottlenecked by their legacy core systems.

BCG India’s latest report "Winning with Core Transformation: Pathways to Enhanced Value and Efficiency" provides a comprehensive perspective on the challenges and opportunities facing Indian insurers and potential strategies in driving holistic business-centered technology transformations. The report highlights critical insights and learnings around navigating Core Transformation programs that can make or break the fortunes of insurers.

The report identifies three key levers for value unlock from Core transformations for insurers: customer delight, processing efficiency and business impact.

The report also further showcases how insurers can undertake these complex transformations involving Core & adjacent systems in a more agile manner by shaping a stack-architecture which is inherently microservices based and de-coupled. Insurers can significantly improve the ROI of the core transformation by taking an MVP approach with clear value milestones helping fund-the-journey along the way than make onerous 4–5-year investments with back-ended value creation.