Legacy / outdated core systems

Aged core insurance systems are slow to change, hard to upgrade and block adoption of newer capabilities like digital submissions, modern data architectures and AI.

Analysis:

Core system modernization is a multi-billion-dollar market. Companies like Guidewire and Duck Creek trade at premium valuations, but the next generation of cloud-native, AI-first core platforms could displace them. The carrier switching cycle is long (3-5 years), but winners build extremely durable revenue streams.