The whitepaper emphasizes the urgent need for insurers to modernize their technology landscape by leveraging cloud-native SaaS solutions. It highlights that nearly 74% of U.S. insurance companies still depend on legacy systems, consuming up to 70% of IT budgets for maintenance. Instead of a complete overhaul, the paper advocates for a composable architecture approach—adding modular SaaS layers atop existing systems to address specific business outcomes such as improved customer experience, faster claims settlement, and enhanced CRM capabilities. This strategy minimizes disruption, accelerates innovation, and ensures business continuity while gradually reducing reliance on legacy platforms.

The document further outlines a phased implementation roadmap, starting with identifying pain points and prioritizing modules that deliver quick wins. It stresses the importance of robust cloud integration layers, API-first design, and strong change management practices. Recommendations vary by insurer size: small firms should adopt plug-and-play SaaS suites, medium firms should build API layers and hybrid models, while large insurers require full cloud enablement layers and orchestration tools. Across all sizes, the incremental approach reduces operational risk by up to 70% compared to big-bang migrations, offering faster ROI, improved flexibility, and long-term scalability.