P&C insurance technology, or insurtech, refers to the digital platforms and software systems property and casualty insurers use to manage underwriting, policy administration, claims, billing and regulatory compliance. Market volatility, rising claims costs and customer expectations continue to shape the insurance landscape, and modern technology has become a critical competitive advantage for P&C carriers and MGAs.
Many P&C insurers and MGAs already rely on advanced insurance technology to automate workflows, improve risk assessment, accelerate speed-to-market and deliver seamless digital experiences. However, some insurers still operate on legacy systems that limit agility and growth while increasing operational costs.
For organizations evaluating core systems, their technology decisions will significantly impact underwriting performance, expense ratios and speed-to-market. Here’s what P&C insurers need in their technology stack to compete effectively in an increasingly data-driven, regulated and customer-centric market.
How P&C Insurance Carriers and MGAs Increase Profitability With Modern Technology
P&C insurance carriers and MGAs gain profitability by combining disciplined underwriting with modern insurance technology that improves pricing accuracy, risk selection and operational efficiency. Property and casualty carriers and MGAs depend on continuous repricing, making real-time data and analytics essential to their operations.
By leveraging P&C insurance technology to analyze risk exposure, historical loss data and market conditions, insurers can reduce loss ratios, lower operating costs and respond faster to underwriting volatility. Automated underwriting workflows, configurable rating engines and integrated policy systems enable more precise risk selection and dynamic pricing, making a solid core technology the only solution for sustainable profitability in today’s competitive P&C market.
Challenges P&C Insurance Companies & MGAs Face Today
P&C insurance companies and MGAs are operating in a volatile environment, marked by rising loss costs, increased risk exposure, regulatory complexity and growing customer expectations. To remain profitable and competitive, carriers must manage underwriting volatility while modernizing the technology that supports and streamlines core insurance operations and changes how different departments communicate with one another and the policyholder.
Here are some common challenges.
Rising Claims Costs and Catastrophic Losses
According to an AM Best market report, U.S. P&C underwriting losses reached a 10-year high, driven by rising claims and catastrophes. [1] Rising claims costs are due to inflation, supply chain disruptions and an increase in the cost of labor, materials and litigation. More frequent and severe weather events—including hurricanes, wildfires, floods, and destructive storms—are driving higher catastrophe losses and increasing risk across a wider range of locations. [2] These trends make accurate pricing, risk modeling and capital planning increasingly difficult without modern data and analytics capabilities.
Modern P&C insurance technology helps insurers respond to claims more effectively by providing real-time loss data, catastrophe modeling and automated claims workflows. These capabilities improve insights about risk exposure while reducing claims cycle times and administrative costs.
Rising claims costs continue to strain P&C insurance companies because severe weather events, inflation and litigation are more frequent and severe. More hurricanes, wildfires, floods and other destructive storms have expanded catastrophe exposure, particularly in high-risk regions.
Inflation has increased the cost of labor and materials, thereby inflating claims payouts. Litigation usually results from slow claims processing and ends in higher settlements. Lengthy claim resolution timelines not only increase uncertainty for P&C insurers but also make accurate underwriting and pricing more challenging.
Underwriting Volatility and Capacity Constraints
The P&C industry recorded its best mid-year underwriting gain in almost 20 years, according to NAIC. [3] However, underwriting volatility and capacity constraints still require P&C carriers and MGAs to tighten guidelines, reduce exposure and exit high-risk markets or lines of business. Reinsurance availability, pricing pressure and stricter treaty terms further limit risk appetite, increasing reliance on precise underwriting and dynamic pricing strategies.
Advanced underwriting and rating technology enables insurers to analyze exposure in real-time, adjust pricing more accurately and manage capacity with greater control. These capabilities allow carriers to protect margins while remaining responsive to market conditions.
Legacy Technology and Manual Processes
Legacy systems remain a major operational barrier for many P&C insurance companies. [4] Outdated policy administration, claims and billing platforms slow down product launches, restrict rate and form changes and increase operating costs. Manual workflows and disconnected systems reduce visibility across the policy lifecycle and limit an insurer’s ability to scale and adapt quickly.
Modern, integrated P&C insurance technology replaces fragmented systems with configurable platforms that streamline policy administration, automate workflows and support multi-line, multi-state operations within a single system. These features improve efficiency and speed-to-market. [5]
Legacy technology is an obstacle for insurers but especially for P&C insurance companies because it limits efficiency across core insurance operations and poses an obstacle to scaling business.
In claims handling, manual workflows and disconnected systems increase cycle times, raise administrative costs and reduce visibility into claim status and performance. Billing and rating limitations further compound these challenges, making it difficult for P&C carriers to support complex pricing models, real-time data integration and modern customer or broker experiences.
Rising Customer and Distribution Expectations
Customer and distribution expectations greatly influence how P&C insurers compete. Policyholders and brokers now expect instant quotes, digital self-service, real-time policy access and transparent claims updates. [6] Legacy systems often struggle to support these experiences, creating friction across the customer and broker journey.
P&C insurance technology enables self-service portals, automated quoting, real-time communication and seamless integrations—helping insurers improve customer satisfaction and retention as well as broker productivity.
Regulatory and Compliance Pressure
P&C insurance companies face significant regulatory and compliance challenges due to complex, state-by-state requirements. Failure to comply can result in fines, reputational damage, and restrictions on doing business in certain markets.
Each state enforces its own rules for policy filings, rate approvals, licensing and consumer protections, forcing insurers to navigate a patchwork of regulations that can slow product launches and increase operational costs. A modern PAS automatically aligns each state with its relevant rules and regulations and enables constant monitoring, reporting and system updates.
How Leading P&C Insurance Companies Use Technology To Overcome Challenges & Compete
Larger P&C insurance companies are already leveraging modern technology to gain a competitive edge, improve operational efficiency and enhance the agent and customer experience. This adoption also allows them to offer more personalized coverage.
Policy administration platforms enable P&C insurers to quickly configure products, streamline underwriting and manage multiple lines of business from a single system. This flexibility shortens time-to-market and allows carriers to adapt to changing regulatory and competitive environments.
Claims automation and digital workflows help P&C carriers process claims faster, reduce errors and improve transparency for policyholders, brokers and MGAs. From FNOL to settlement, automated claims tools drive efficiency while lowering administrative costs.
Billing, rating and data integrations allow P&C insurance companies to better manage complex pricing models, process payments seamlessly and leverage real-time data insights for better decision-making. Integrated technology also supports brokers and agents with accurate and fast quotes as well as streamlined communication, designed to gain and retain clients.
Policy Administration Systems for P&C Insurance Companies
Internet Solutions for Insurance (ISi) provides modern, end-to-end software solutions specifically designed for P&C insurance companies. As an alternative to its more expensive competitors, like Duck Creek or Guidewire, ISi’s platforms streamline policy administration, enabling small and mid-sized carriers and MGAs to manage multiple lines of business on the internet from a single system.
By combining automation, real-time data insights and flexible configuration tools, ISi helps reduce operational costs and deliver the digital experiences that customers, brokers and MGAs expect. Modotech, the insurtech that powers ISi, has been a trusted partner for P&C carriers for over 25 years.
Claims Automation and Digital Workflows
ISi plays a key role in claims automation for P&C insurance companies by providing a fully integrated platform that streamlines FNOL, accelerates settlements and incorporates fraud detection tools. With ISi, carriers can automate routine tasks, monitor claims in real time and ensure consistency and accuracy across workflows, helping insurers reduce costs while delivering faster, more reliable service to policyholders and brokers.
Billing, Rating, and Data Integration
ISi enhances billing, rating and data integration for P&C insurance companies by offering a single, unified platform that handles multi-line policies, premium calculations, and automated invoicing. Its API-driven architecture allows seamless connection with third-party systems, data providers, and distribution channels, enabling carriers to leverage real-time insights for accurate pricing, streamlined billing, and improved operational efficiency.
Comparison: Legacy Systems vs. Modern P&C Admin Platforms
Future Trends Shaping P&C Insurance Companies
Here are a few trends that are shaping the P&C market this year:
Usage-based car insurance allows premiums to reflect real-time risk behavior, while Embedded insurance integrates coverage directly into products and services, creating new distribution channels. Carriers are also focusing on platform modernization to replace legacy systems, as traditional SaaS solutions often lack the flexibility needed for multi-line, state-compliant operations.
ISi supports these trends by providing a modern, fully integrated platform that enables usage-based pricing, AI-driven workflows, AI-assisted coding and flexible, multi-line policy administration—all designed to help P&C insurers stay competitive and agile. See how ISi can support your organization with a free demo.
Sources
AM Best. Best’s Market Segment Report: Weather, Reinsurance and Inflation Once Again Drive U.S. P/C Results.
Insurance Information Institute (III). Inflation, replacement costs, climate losses shape homeowners’ insurance options.
NAIC. Property & Casualty Industry.
McKinsey & Company. IT modernization in insurance: Three paths to transformation.
Deloitte Insights. 2026 global insurance outlook.
Insurance Journal. JD Power: Full Digital Claims Process Drives High Customer Satisfaction.
Gartner. Create Tech Solutions for the Life and P&C Insurance Industries Primer for 2025