Breaking Free from the Core: Redefining Insurance Modernization for the AI Era

Insurance modernization has been a boardroom topic for decades. Yet despite billions spent globally, only a fraction of transformation programs delivers measurable ROI. AI-driven underwriting, digital claims, and omnichannel journeys are the new imperatives, but most insurers are still held back by one thing: the immovable “core.”

Policy administration systems (PAS) were never designed for today’s world of real-time AI, instant digital service, and cross-channel engagement. They’re monolithic, brittle, and costly to replace. Studies show up to 80% of insurers’ IT budgets still go toward simply maintaining these systems, leaving little room for true innovation.

The core problem with ‘the core’

Most modernization programs fail because they treat PAS replacement as modernization itself. But “rip-and-replace” is a trap - multi-million-dollar investments, multi-year timelines, and a dismal success rate.

Meanwhile, customers expect immediacy. Competitors innovate faster. Regulators tighten oversight. And the core keeps dragging everything down.

That’s why forward-looking insurers are moving to a new paradigm - Coreless Architecture.

What does coreless mean?

“Coreless” isn’t about having no core. It’s about not being limited by one.

A Coreless Architecture de-emphasizes the PAS as the system of record and builds flexibility around it by using modular services, APIs, and orchestration layers.

•  API-first and event-driven: Every function - from quoting to underwriting, and claims to servicing - runs as modular services.
• Orchestration at the edge: Middleware or execution fabrics connect legacy and modern systems seamlessly.
• Composable innovation: Plug in insurtech, AI, RegTech, or customer apps without rewriting the PAS.
• Progressive modernization: Modernize incrementally, not through risky, all-or-nothing overhauls.

The result? Business logic, workflows, and customer experiences run independently of the core, enabling speed, resilience, and innovation.

Why coreless matters now

The timing couldn’t be more critical. As insurers race to digitize, many find themselves shackled by failed PAS migrations and half-finished transformations.

Coreless modernization offers a smarter path forward - one that prioritizes flexibility over fragility and speed over complexity.

• Avoid failed PAS migrations: No more betting millions on projects that may never deliver.
• Faster innovation: Launch AI-driven underwriting or digital FNOL in weeks, not years.
• Agility without fragility: Modular by design - if one function fails, the system stays running.
• Competitive edge: Move at insurtech speed while still leveraging legacy strength.

This shift isn’t theoretical. It’s already happening.

• Digital FNOL apps now integrate via APIs without touching core claims systems.
• AI underwriting engines feed real-time risk scores into PAS.
• Customer self-service portals operate independently from legacy backends.

These are all signs of a market quietly evolving toward a Coreless model - one that balances agility with continuity.

The Neutrinos approach: Coreless System of Execution (CSoE)

At Neutrinos, we’re not just talking about Coreless - we’ve built it.

The AI-Native Coreless System of Execution (CSoE) is a real-time execution engine that runs above your core, letting you modernize without tearing it apart.

• Data fabric layer: Unifies fragmented data into a governed, real-time fabric.
• Event-driven architecture: Connects underwriting, claims, and distribution seamlessly.
• Agentic orchestration: AI-driven automation with built-in observability and compliance.
• Enterprise-grade governance: Data lineage, tamper-proof logs, and regulatory confidence.

With CSoE, insurers can:

• Deliver sub-500ms customer experiences.
• Launch new digital products in weeks, not years.
• Cut data ops costs by up to 40%.
• Innovate continuously without being hostage to the core.

Final word: moving beyond the core

Modernization isn’t about replacing your core. It’s about freeing your business from it.

A Coreless architecture gives insurers the power to innovate on their own their terms: incrementally, securely, and at market speed.
With Neutrinos’ Coreless System of Execution, insurers don’t just survive modernization; they turn it into their competitive advantage.