The Future of Insurance IT Spending: Why Legacy Systems Are Draining Innovation in America’s Insurance Industry

Sat, 01 Nov 2025 12:36:21 +0000

The U.S. insurance industry stands at a digital crossroads. As customer expectations evolve faster than ever, insurers are realizing that their biggest obstacle isn’t competition—it’s their own technology. According to Clearwater Analytics (2024), a staggering 74% of insurance companies still rely on legacy systems for critical operations like underwriting, pricing, and claims processing. These systems, many built decades ago, are reliable but rigid—designed for an era when paperwork ruled and digital agility wasn’t a concern.