In an era defined by accelerating technological change, heightened customer expectations and increasingly complex regulations, the stakes for getting such programmes right are extraordinarily high.

Against this challenging backdrop, one large-scale core system modernisation recently stood out as a rare success story. Delivered with zero critical defects at go-live, this transformation not only maintained uninterrupted operations but also unlocked significant improvements in efficiency, data integration and customer service.

As part of our IT Insights InsurTalk series, we spoke with James Holmes, an experienced Interim Programme Director and CIO who led the initiative. In this article, we explore the practical lessons that insurers and technology leaders can take away from this experience and uncover how insurers can approach transformation with greater confidence and clarity.

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The strategic imperative for core modernisation

A core system is your fundamental system that underpins your business processes.

James Holmes

Interim Programme Director and CIO

Core systems sit at the heart of every insurance business. Without them, no insurer can function effectively. Yet many organisations still rely on ageing platforms that were never designed to keep up with the demands of modern insurance operations. Over time, these systems become a barrier to progress, making it harder to innovate, respond quickly to changing markets or deliver the seamless customer experience that today’s policyholders expect.

Legacy infrastructure often limits flexibility and transparency, especially in meeting complex UK, European and global regulations. Compliance processes become slower, risk increases and operational costs rise. Equally, as data remains trapped in outdated systems, it becomes difficult to make the most of technologies such as artificial intelligence, automation and advanced analytics – capabilities that are now central to competitiveness in the insurance sector.

Modernisation is no longer optional. It is a strategic imperative to protect market share, as well as improve operational efficiency and build the foundations for future growth. According to McKinsey, improving processes and policies through modernisation can deliver up to 40% gains in operational efficiency.

Beyond cost savings, modern platforms enable insurers to adapt quickly to customer expectations and regulatory demands while freeing employees to focus on higher-value work.

Watch the full video interview with James Holmes:

Building a compelling business case

Any successful core system transformation starts with a robust business case. A clear rationale not only justifies the investment but provides a shared framework to guide decisions and measure progress throughout delivery.

The business case must articulate why the programme is needed, what benefits it will deliver and how success will be defined. These benefits can include:

• Faster time to market;
• Improved customer service;
• Greater operational resilience;
• The ability to harness real-time data for better decision-making.

One of the most common reasons programmes fail is a disconnect between business objectives and IT execution. To avoid this, business leaders and operational teams should be closely involved in shaping the case from the outset. When priorities are co-created rather than imposed, it becomes much easier to secure support and maintain momentum.

The business case also serves as a compass when challenges arise. Whether the team is debating budget adjustments, delivery timelines or changes in scope, having an agreed set of objectives keeps everyone aligned and focused on delivering measurable value.

The business case underpins everything because as soon as you’re clear on the business case, in other words, if I invest this much money, then these are the benefits that I will get back.

James Holmes

Interim Programme Director and CIO

Governance, leadership and communication

Once the business case is agreed, strong governance and leadership become essential to deliver core system modernisation successfully. Effective governance balances structure and flexibility, providing clear processes for escalation, decision-making and accountability without slowing progress with unnecessary bureaucracy.

Ownership should always rest with the business rather than sit solely within IT. After all, it is the teams managing products, supporting customers and handling claims who will depend on the new systems day to day. When business leaders take clear ownership, transformation efforts are more likely to address genuine operational needs and result in meaningful improvements.

You have to be very clear that these change programs are not technology programs… they are business change programs, and they’ve got to be owned by the business.

James Holmes

Interim Programme Director and CIO

Before moving into full execution, it is essential to assess whether the organisation is ready. This involves taking an honest look at how mature the governance structures are, whether roles and responsibilities are clearly defined and how much experience the team has in managing complex programmes. Investing time in this preparation helps prevent delays and misalignment later on.

Leadership also plays a critical role in building confidence and sustaining momentum. Instead of micromanaging, effective leaders set clear expectations and give teams the autonomy to deliver within agreed boundaries. This balance fosters trust, accountability and quicker progress.

Clear communication is equally important. When engaging senior executives, it helps to translate technical detail into straightforward insights they can act on. Using plain language and visual explanations makes it easier for decision-makers to understand programme status without being buried in complexity. With this clarity, securing approvals and maintaining alignment becomes far simpler.

Working with strategic partners

Selecting the right strategic partner can be a decisive factor in the success of core system transformation. While commercial terms are important, cultural fit and shared understanding of the goals should be the top priorities.

A partner who takes time to understand the organisation’s context and priorities can collaborate more effectively and respond to challenges constructively. Technical capability is equally essential. Large-scale insurance programmes require proven expertise to deliver secure, compliant systems that integrate seamlessly with existing processes.

The most successful partnerships are built on transparency and mutual challenge. Rather than simply delivering requirements, the partner should feel empowered to question assumptions, highlight risks and feel able to suggest improvements. This two-way relationship provides the resilience needed when unexpected issues arise and ensures that both parties remain committed to shared outcomes.

When trust is established early, it becomes far easier to navigate the inevitable complexities that will be faced such as adjusting timelines or managing stakeholder expectations without damaging confidence.

Driving adoption and delivering change

Even the most advanced core system modernisation will fail if the people who rely on it every day are not ready to embrace change. Driving adoption requires a thoughtful approach to change management that begins long before go-live.

You need to engage those that are going to use the system at a really early stage so that they absolutely understand how it’s going to work.

James Holmes

Interim Programme Director and CIO

The first step is understanding how employees work today. Mapping out existing processes helps identify pain points and design improvements that will make work more efficient and less frustrating. Change must be positioned as an enabler of success, not simply a new system imposed from above.

Communicating the benefits clearly, both for the business and for individuals, builds confidence and engagement. Employees need to know not only what is changing but why it matters and how it will help them do their jobs more effectively.

A mix of communication channels – workshops, newsletters, videos and in-person training – ensures that everyone feels informed and supported. Equipping managers to act as advocates helps reinforce consistent messages across teams.

Rigorous preparation is just as important as communication. Rehearsing the cutover process multiple times, setting up 24/7 support and establishing contingency plans reduces the risk of disruption when the system goes live. In this programme, taking the time to get every detail right meant the team achieved an outcome that is rare in the insurance sector: no critical defects were reported after launch.

Lessons learnt

Looking back on the delivery of this modernisation, several lessons stand out for any insurer considering a similar journey:

• A clear and credible business case, developed with input from across the business, is non-negotiable. Without it, it becomes almost impossible to secure commitment and maintain focus over time.
• Investing in the right strategic partner and building a collaborative relationship creates a strong foundation for delivery. Cultural fit, technical capability and trust are more valuable than simply choosing the lowest-cost option.
• Readiness to delay go-live when necessary is a sign of strong governance, not weakness. Too many organisations have seen costly failures because they were unwilling to pause and resolve issues before launch.
• Celebrating milestones and recognising individual contributions help sustain momentum and morale through a demanding programme. Transformation is rarely easy, but with a clear plan, engaged leadership and committed teams, it is possible to modernise core systems without disruption – and to set the stage for long-term success.

As James Holmes put it, “Make sure you have a really solid business case… and everybody is bought into it.”

Summary

Successfully modernising core systems is no longer a luxury but a strategic requirement for insurers determined to remain competitive in a digital-first market. The benefits are clear: greater operational efficiency, improved customer experience, stronger compliance and the ability to harness real-time data and emerging technologies.

Achieving these outcomes, however, demands more than the right technology. It requires a robust business case, engaged leadership, effective governance and a trusted delivery partner who shares the organisation’s goals and culture. Perhaps most importantly, success depends on the commitment of employees, whose willingness to embrace change ultimately determines whether modernisation delivers on its promise.

The journey may be complex, but the rewards are significant. By taking a structured, collaborative approach and learning from those who have delivered zero-defect transformations, insurers can lay the groundwork for sustainable growth and long-term resilience.

If you would like to watch our full interview with Interim CIO James Holmes, follow this link to visit our IT Insights Hub and explore the conversation in full.