The P&C insurance industry has crossed a threshold.

The majority of insurance core systems sold since 2015 were cloud-basedor hosted rather than implemented on premises, according toresearch from Strategy Meets Action, a strategic advisory servicesfirm serving the insurance industry. This has critical implicationsfor insurers who have taken a wait-and-see approach to digitaltransformation, chiefly: The gap between insurers that aredigitally enabled from the core and those that are not isaccelerating. It's no longer a question of whether to replace corelegacy systems. It's a question of how.

Many insurers — and especially small-to-medium carriers andthose with smaller pools of tech talent to draw from — areeffectively leapfrogging the competition by transitioning toa Software as a Service model for their coresystems.

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