New research from Covernet has revealed a roadblock for insurers and MGAs – their technology isn’t keeping up with their ambitions.
The survey of insurers and MGAs found that while 86% say scalability is critical for rapid speed-to-market, a staggering 71% cite time-to-market as their biggest IT challenge – almost double the number who are worried about cost (38%).
The gap between ambition and capability is most obvious in product development cycles. Four in ten insurers (40%) are launching new products quarterly or more often, but nearly three-quarters (73%) admit their IT systems can’t scale fast enough to support those launches.
This is compounded by the fact that almost nine in ten insurers (89%) require customised software to deliver their products, a need that’s slowing down deployments and leaving firms frustrated.
The data exposes a clear operational bottleneck. Insurers recognise the strategic importance of rapid product deployment but find their IT infrastructure consistently falling behind market demands. With 68% launching products at least annually, the inability to scale technology quickly represents a significant competitive disadvantage. Jim Campbell, Chief Commercial Officer at Covernet, said:
“Insurers are stuck in a scaling trap. They know speed-to-market is key, but their infrastructure is holding them back. When 71% of insurers say time-to-market is their number one IT challenge, it’s a clear signal that the current approach just isn’t working.
“The answer isn’t to slow innovation – it’s to change how we think about IT scalability. Insurers need platforms that allow for customisation without creating months-long delays. Otherwise, they risk losing ground to competitors who can move faster.”
Covernet’s research highlights a fundamental clash between commercial ambition and technical capability – and a growing risk that insurers’ infrastructure becomes a barrier to growth in a competitive market.
The Covernet Tech Poll was commissioned from Context Skythorn. Total poll size was 31 tech directors from insurers and MGAs. Fieldwork was undertaken from 26 May to 26 June 2025.
Jim Campbell
Jim Campbell is Chief Commercial Officer at Covernet, where he leads new business development, key client relationships and works with the development management team to deliver innovation and execution. He joined Covernet in 2011 after earlier roles in insurance software and investment banking, including positions at Barclays and Citi.
Covernet
Covernet specialises in smart, web-based software for insurers, MGAs and brokers. Founded in 1995, the company’s fully hosted ISMIS platform helps clients get to market faster and manage sales, policy administration, claims, compliance and MI with extensive real-time integrations.
