A small group of publicly traded insurers and several emerging private firms have embraced a technology-native model: they build, maintain, and update their core systems and data architectures using code they own and control. This approach offers a significant competitive advantage, writes Adam Klauber, CFA, partner and group head of the financial services and technology research sector, in Expanding Moats of Technology-Native Insurers, published July 20, 2026. By contrast, most property and casualty (P&C) insurers rely largely on outdated, inflexible, and expensive-to-maintain technology, leaving the industry with substantial technical debt.
The widening gap between technology-native insurers and the broader industry may translate into economic benefits, including increased market share, stronger margins, and the ability to compound over the long term.
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