Against this challenging backdrop, one large-scale core system modernisation recently stood out as a rare success story. Delivered with zero critical defects at go-live, this transformation not only maintained uninterrupted operations but also unlocked significant improvements in efficiency, data integration and customer service.

As part of our IT Insights InsurTalk series, we spoke with James Holmes, an experienced Interim Programme Director and CIO who led the initiative. In this article, we explore the practical lessons that insurers and technology leaders can take away from this experience and uncover how insurers can approach transformation with greater confidence and clarity.

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The strategic imperative for core modernisation

Core systems sit at the heart of every insurance business. Without them, no insurer can function effectively. Yet many organisations still rely on ageing platforms that were never designed to keep up with the demands of modern insurance operations. Over time, these systems become a barrier to progress, making it harder to innovate, respond quickly to changing markets or deliver the seamless customer experience that today’s policyholders expect.

Legacy infrastructure often limits flexibility and transparency, especially in meeting complex UK, European and global regulations. Compliance processes become slower, risk increases and operational costs rise. Equally, as data remains trapped in outdated systems, it becomes difficult to make the most of technologies such as artificial intelligence, automation and advanced analytics – capabilities that are now central to competitiveness in the insurance sector.

Modernisation is no longer optional. It is a strategic imperative to protect market share, as well as improve operational efficiency and build the foundations for future growth. According to McKinsey, improving processes and policies through modernisation can deliver up to 40% gains in operational efficiency.

Beyond cost savings, modern platforms enable insurers to adapt quickly to customer expectations and regulatory demands while freeing employees to focus on higher-value work.

Watch the full video interview with James Holmes:

Building a compelling business case

Any successful core system transformation starts with a robust business case. A clear rationale not only justifies the investment but provides a shared framework to guide decisions and measure progress throughout delivery.

The business case must articulate why the programme is needed, what benefits it will deliver and how success will be defined. These benefits can include:

• Faster time to market;
• Improved customer service;
• Greater operational resilience;
• The ability to harness real-time data for better decision-making.

One of the most common reasons programmes fail is a disconnect between business objectives and IT execution. To avoid this, business leaders and operational teams should be closely involved in shaping the case from the outset. When priorities are co-created rather than imposed, it becomes much easier to secure support and maintain momentum.

The business case also serves as a compass when challenges arise. Whether the team is debating budget adjustments, delivery timelines or changes in scope, having an agreed set of objectives keeps everyone aligned and focused on delivering measurable value.

Governance, leadership and communication

Once the business case is agreed, strong governance and leadership become essential to deliver core system modernisation successfully. Effective governance balances structure and flexibility, providing clear processes for escalation, decision-making and accountability without slowing progress with unnecessary bureaucracy.

Ownership should always rest with the business rather than sit solely within IT. After all, it is the teams managing products, supporting customers and handling claims who will depend on the new systems day to day. When business leaders take clear ownership, transformation efforts are more likely to address genuine operational needs and result in meaningful improvements.

Before moving into full execution, it is essential to assess whether the organisation is ready. This involves taking an honest look at how mature the governance structures are, whether roles and responsibilities are clearly defined and how much experience the team has in managing complex programmes. Investing time in this preparation helps prevent delays and misalignment later on.

Leadership also plays a critical role in building confidence and sustaining momentum. Instead of micromanaging, effective leaders set clear expectations and give teams the autonomy to deliver within agreed boundaries. This balance fosters trust, accountability and quicker progress.

Clear communication is equally important. When engaging senior executives, it helps to translate technical detail into straightforward insights they can act on. Using plain language and visual explanations makes it easier for decision-makers to understand programme status without being buried in complexity. With this clarity, securing approvals and maintaining alignment becomes far simpler.

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Working with strategic partners

Selecting the right strategic partner can be a decisive factor in the success of core system transformation. While commercial terms are important, cultural fit and shared understanding of the goals should be the top priorities.

A partner who takes time to understand the organisation’s context and priorities can collaborate more effectively and respond to challenges constructively. Technical capability is equally essential. Large-scale insurance programmes require proven expertise to deliver secure, compliant systems that integrate seamlessly with existing processes.

The most successful partnerships are built on transparency and mutual challenge. Rather than simply delivering requirements, the partner should feel empowered to question assumptions, highlight risks and feel able to suggest improvements. This two-way relationship provides the resilience needed when unexpected issues arise and ensures that both parties remain committed to shared outcomes.

When trust is established early, it becomes far easier to navigate the inevitable complexities that will be faced such as adjusting timelines or managing stakeholder expectations without damaging confidence.

Driving adoption and delivering change

Even the most advanced core system modernisation will fail if the people who rely on it every day are not ready to embrace change. Driving adoption requires a thoughtful approach to change management that begins long before go-live.

The first step is understanding how employees work today. Mapping out existing processes helps identify pain points and design improvements that will make work more efficient and less frustrating. Change must be positioned as an enabler of success, not simply a new system imposed from above.

Communicating the benefits clearly, both for the business and for individuals, builds confidence and engagement. Employees need to know not only what is changing but why it matters and how it will help them do their jobs more effectively.

A mix of communication channels – workshops, newsletters, videos and in-person training – ensures that everyone feels informed and supported. Equipping managers to act as advocates helps reinforce consistent messages across teams.

Rigorous preparation is just as important as communication. Rehearsing the cutover process multiple times, setting up 24/7 support and establishing contingency plans reduces the risk of disruption when the system goes live. In this programme, taking the time to get every detail right meant the team achieved an outcome that is rare in the insurance sector: no critical defects were reported after launch.

Lessons learnt

Looking back on the delivery of this modernisation, several lessons stand out for any insurer considering a similar journey:

• A clear and credible business case, developed with input from across the business, is non-negotiable. Without it, it becomes almost impossible to secure commitment and maintain focus over time.
• Investing in the right strategic partner and building a collaborative relationship creates a strong foundation for delivery. Cultural fit, technical capability and trust are more valuable than simply choosing the lowest-cost option.
• Readiness to delay go-live when necessary is a sign of strong governance, not weakness. Too many organisations have seen costly failures because they were unwilling to pause and resolve issues before launch.
• Celebrating milestones and recognising individual contributions help sustain momentum and morale through a demanding programme. Transformation is rarely easy, but with a clear plan, engaged leadership and committed teams, it is possible to modernise core systems without disruption – and to set the stage for long-term success.

As James Holmes put it, “Make sure you have a really solid business case… and everybody is bought into it.”

Summary

Successfully modernising core systems is no longer a luxury but a strategic requirement for insurers determined to remain competitive in a digital-first market. The benefits are clear: greater operational efficiency, improved customer experience, stronger compliance and the ability to harness real-time data and emerging technologies.

Achieving these outcomes, however, demands more than the right technology. It requires a robust business case, engaged leadership, effective governance and a trusted delivery partner who shares the organisation’s goals and culture. Perhaps most importantly, success depends on the commitment of employees, whose willingness to embrace change ultimately determines whether modernisation delivers on its promise.

The journey may be complex, but the rewards are significant. By taking a structured, collaborative approach and learning from those who have delivered zero-defect transformations, insurers can lay the groundwork for sustainable growth and long-term resilience.

If you would like to watch our full interview with Interim CIO James Holmes, follow this link to visit our IT Insights Hub and explore the conversation in full.

Revolutionise your claims operations with futureClaims

futureClaims is a flexible modernisation programme for the commercial insurance market, designed to address key challenges in the claims value chain.

Built as a modular set of components, it allows you to select only the features you need – without the need of a replacement of your entire claims technology stack.

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Environmental and geopolitical challenges

Climate change impact

We’re seeing what once felt hypothetical become a tangible concern. The potential weakening of the Atlantic Meridional Overturning Circulation (AMOC) and Gulf Stream could reshape global climate patterns, ecosystems, and economic stability.

At the same time, the rapid Arctic ice melt is opening new northern trade routes. While these routes promise opportunity and new access to resources, they also heighten geopolitical friction – particularly among powers like the US, Canada, Russia, China, and several Nordic nations. China’s Belt and Road Initiative, with its growing Arctic ambitions, only intensifies this dynamic.

A shift in global power dynamics

Asia’s accelerating economic and demographic growth is steadily redistributing global capital and influence. For Western maritime and insurance players, this isn’t just a shift, but a wake-up call.

Staying competitive will require leaner operations, technological edge, and faster decision-making cycles.

Strategic maritime chokepoints

Maritime passages such as the Strait of Malacca, the Suez Canal, the Dardanelles, and Bab el-Mandeb are more than logistical routes – they are pressure points in the global system.

In an increasingly fragmented world, any disruption – be it from regional conflict, political instability, or military tension – can quickly escalate, affecting global trade, insurance risk, and energy supply chains.

Control over these chokepoints often translates into strategic influence, making them critical focal points for national security and economic power alike.

Disruption in trade and financial implications

Tariffs volatility

Volatile trade policies have made tariff forecasting a moving target. The impact on shipbuilding and maintenance (machinery and hull spare parts) is already being felt.

Many companies are re-evaluating their manufacturing orders, supply chains, and logistics, with a likely decline in sea-transported cargo – and by extension, in insured volumes.

Capital market uncertainty

Shifting political alignments are influencing reserve currency preferences, hinting at a gradual move away from USD dominance.

For the marine insurance sector, this raises the stakes. Financial agility and more adaptive pricing and underwriting models are becoming strategic necessities.

Complex sanctions landscape

The evolving landscape of international sanctions is increasing compliance workloads across the board – fleet operators, insurers, banks. Thorough vessel risk assessments, precise underwriting, and rigorous due diligence are now standard.

But complexity comes at a cost: longer lead times on claims and higher administrative burden. Reputational and financial risks loom large for those not keeping pace.

Read about: claims process automation in insurance.

Maritime threats on the rise

Resurfacing risks

Events like the Russia–Ukraine conflict and Houthi attacks in the Red Sea serve as powerful reminders of the maritime sector’s vulnerability to geopolitical crises.

On just one night – 24 February 2022 – over 300 vessels were impacted by the outbreak of war. In the Red Sea, between November 2023 and October 2024, there were 190 documented missile and drone attacks, significantly disrupting commercial routes.

The industry’s response – rerouting vessels, strengthening onboard security, and adapting operational protocols – has tangible consequences.

These measures increase insurance costs, drive up transport expenses, and ultimately feed into broader inflationary trends.

Human factor often overlooked

In the background lies a critical human element: seafarers. The Philippines, home to around 488,000 merchant mariners, roughly 30% of the global workforce, is a silent pillar of global trade. But what if Indo-Pacific tensions forced their return home for national service? It’s a scenario few talk about – but one worth including in future risk models.

Industry adaptation and regionalisation

Localised insurance solutions

One notable shift is the increasing relevance of regional players – local brokers and Managing General Agents (MGAs) – tailoring insurance solutions to meet local market needs. This allows for more agile, context-aware service offerings.

Geographical proximity to clients

There’s also a move towards proximity. Underwriters and claims managers are physically relocating closer to shipowners and fleet managers. The result? Stronger relationships and faster response times – benefits that become crucial in times of disruption.

Read about the latest tech in insurance:

• Insurance Business Intelligence: the catalyst for innovation
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Greece: a global anchor in maritime trade

It’s impossible to ignore the weight of the Greek fleet – 4221 vessels representing 16.9% of global deadweight tonnage and 60% of Europe’s capacity.

This scale gives Greece a strategic voice in shaping how the industry evolves. Investment in technology, data-driven risk assessment, and sustainability are not optional for players of this magnitude – they’re imperatives.

Looking forward: a new era of resilience

The so-called “End of History” era is clearly behind us. We’re navigating a multipolar world, where agility, resilience, and liquidity matter more than ever. The maritime industry, responsible for transporting 80–90% of the world’s goods, is again at the heart of global transformation.

The good news? Technology is on our side.

Innovations in alternative fuels, New Space solutions, ArtificiaI Intelligence, and advanced data analytics offer faster feedback loops, better operational decisions, and strategic planning. Embracing them is no longer a matter of choice.

Piraeus may be steeped in history, but what strikes me most after this conference is how future-facing this industry is. We are living through “interesting times”, but with the right mix of strategy, collaboration, and innovation, we can navigate them with confidence.

Revolutionise your claims operations with futureClaims

futureClaims is a flexible modernisation programme for the commercial insurance market, designed to address key challenges in the claims value chain.

Built as a modular set of components, it allows you to select only the features you need – without the need of a replacement of your entire claims technology stack.

Discover our futureClaims Contact us