For many insurers, MGAs and brokers in the UK, investing in new technology often feels like constantly patching a system that was never designed for today’s pace of change. Whether it’s slow quote generation, rigid renewal workflows, or the challenge of entering the embedded insurance space, the response is often to plug the gap - and fast.
That quick fix usually comes in the form of a new module or workaround layered onto an already complex set of systems. And while modular solutions aren’t inherently bad - in fact, flexibility is essential - problems arise when these solutions can’t integrate, can’t share data, or require manual processes to bridge the gaps. Instead of improving efficiency, this ends up adding more complexity, reducing agility, and raising operating costs.
The opportunity in smarter integration
The real issue isn’t modularity - it’s misalignment. When every technology purchase is made in reaction to a specific pain point without considering how it fits into the bigger picture (client journey, your operational processes, etc), the result is a disjointed digital ecosystem. Over time, this undermines your ability to scale, serve customers efficiently, and respond to market shifts.
And in today’s market, standing still is not an option. Insurers and MGAs are battling razor-thin margins, rising loss ratios, and high customer expectations, especially in product lines like motor insurance, where profitability is under severe pressure.
A recent PwC report found that around 70% of an insurer’s IT budget goes to maintaining legacy systems, leaving little left for innovation or competitive differentiation. That’s not sustainable in a market that demands both cost efficiency and speed.
The competitive advantage of a strategic partner
While choosing the right technology is undeniably crucial, it's only one piece of the puzzle. To truly make the most of technology, the often-overlooked ‘magic’ ingredient is partnership. This isn't just about finding a vendor; it's about collaborating with an organisation who is genuinely insightful, deeply knowledgeable about your specific challenges, and truly invested in your long-term success.
The right partner acts as an extension of your team, bringing not just a product, but also valuable expertise, foresight, and a shared commitment to delivering exceptional customer outcomes and profitable growth. They can guide you through the complexities, help you unlock the full potential of your tech investments, and even anticipate future needs, ensuring your digital evolution is both strategic and sustainable.
A guide to choosing flexible, future-fit technology
To succeed, insurers need technology that’s both modular and integrated, allowing them to modernise at their own pace without locking themselves into rigid architectures or disconnected point solutions.
Here’s what to look for in future-fit tech:
When those conditions are met, a “piece-by-piece” approach can actually be a strategic advantage — allowing you to modernise incrementally, focus on high-impact areas first, and avoid costly overhauls.