Property and casualty (P&C) insurers are increasingly directing technology budgets toward core insurance systems and data capabilities as carriers seek to improve access to operational information and support underwriting, pricing, and claims processes. The shift reflects growing attention to the systems and data infrastructure that support insurance operations, rather than focusing primarily on customer-facing digital applications.

For much of the past decade, insurance technology investment focused heavily on customer portals, mobile applications, digital quoting, and claims intake. While these projects improved digital interactions, they did not necessarily address the underlying systems and data capabilities that influence underwriting performance.

The combined ratio remains an important measure of underwriting performance, and recent industry analysis has pointed to continued pressure on insurers. According to the source material, Deloitte’s outlook expects the ratio to deteriorate through 2026, continuing a trend observed since 2024. The changing environment is contributing to greater attention on risk selection, pricing, claims performance, and the technology infrastructure supporting those activities.

Insurance carriers are increasingly treating core-system modernization and data modernization as connected technology initiatives. Replacing a legacy policy administration or claims system does not necessarily resolve data-access challenges if information remains difficult to extract, reconcile, or distribute to analytical systems.

The source material cites analyst estimates placing North American core modernization spending at approximately $10.5 billion across 2024 through 2026. It also identifies data capabilities as an important factor in determining whether technology investments deliver their intended business value.

As a result, insurers evaluating P&C insurance software are increasingly considering how operational data is exposed alongside traditional functionality.

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