Across Africa, the insurance industry is undergoing a period of accelerated change. But while front-end innovation like AI and cybersecurity often grabs headlines, many insurers are quietly tackling a more complex challenge: modernising the legacy core systems that underpin their operations.
Legacy platforms, often built over a decade ago, are becoming increasingly difficult — and costly — to maintain. These systems struggle to support today’s needs: digital channels, real-time processing, cloud computing, and integrated analytics. According to Adacta’s 2025 survey, nearly half of global insurers now cite legacy system limitations as their biggest barrier to innovation.
For African insurers, the stakes are even higher. Digital transformation offers a way to leapfrog traditional barriers — but only if the core infrastructure can support it.
Successful core system transformation in Africa
While international models often rely on substantial tech investments, African insurers are carving out a more pragmatic path to core system modernisation. Here’s how transformation is taking shape:
1. Process optimisation before tech replacement
Modernisation isn’t just about deploying new software. Businesses also need to ask how insurance is delivered. Insurers have to rely on operational audits to help them identify inefficiencies and redesign workflows before selecting the right tech to support them.
2. Choose phased, low-risk implementations
Instead of removing the old system entirely and replacing it with a new, modern system, many insurers are modernising in phases. This means updating claims, billing, or customer portals one step at a time. This approach minimises risk while creating room for learning and adaptation.
3. Leverage local partnerships for faster results
Collaborating with African insurtechs and regional tech vendors allows insurers to move faster and adapt solutions to local regulatory and operational requirements. These partnerships can also reduce implementation costs.
4. Ensure systems support local compliance and language needs
Modern core systems must be designed for flexibility to support the various regulatory frameworks, languages, and market conditions across the continent. This is especially important for pan-African insurers and for those expanding across borders.
Looking ahead
Core system modernisation comprises a complete business transformation, not just an upgrade in technology. As Africa’s insurance industry scales to meet the demands of digital customers and dynamic markets, success depends on the strength and flexibility of the systems that power it.
The insurance leaders of the next era will be those who approach modernisation with strategy, local relevance, and agility.
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