The challenge of legacy PAS environments is well understood. These systems often span decades of technology, restrict agility, complicate data access, and slow the adoption of advanced capabilities such as automation and AI. The research shows that insurers tied to these systems face higher costs, lower customer satisfaction, and weaker growth performance compared to digital-forward competitors.

As a result, the market is shifting from full-system replacement to modularisation. Instead of removing entire cores, insurers are unbundling them and layering modern components around the existing landscape. This includes orchestration layers, financial infrastructure, digital distribution tools, reconciliation engines, data pipelines, and cloud-native microservices. The modular approach reduces transformation risk whilst significantly accelerating delivery.

Another key theme in the research is the rise of ecosystem-based transformation. Innovation is no longer delivered through a single platform, but through a network of integrated partners working together across the value chain. Whether through AI-driven underwriting, IoT-enabled risk insights, cloud-based claims systems, or customer engagement tools, insurers gain agility and choice by assembling interoperable capabilities.

This evolution is also reshaping the role of Insurtechs. Rather than compete directly with incumbents, many now operate as specialised capability providers embedded within transformation programmes. The research highlights that insurers who embrace this ecosystem approach outperform those who attempt modernisation through traditional, single-vendor strategies.

This is precisely where partnerships become strategically essential. A connected ecosystem can deliver excellence across policy administration, payments, data orchestration, and compliance. For Diesta, this modular era aligns perfectly with our strategy. We integrate seamlessly with Insurtech providers and core platforms to give insurers best-in-class financial and operational capabilities without forcing full system replacement. Our infrastructure modernises core financial operations whilst fitting cleanly into the modular systems insurers are now building. The result is a transformation journey that is faster, safer, and significantly more scalable than traditional PAS overhauls.