Composable insurance solutions: A faster, smarter alternative to core systems 

A long history of resilience in the face of various challenges has taught the insurance industry to act carefully. One of the challenges insurance faces today is the legacy systems it relies on. With the advent of computers in the middle of the 20^th century, core systems helped insurers elevate their businesses. Manual processes evolved into complex enterprise-grade systems, allowing carriers to manage key operations such as policy administration, claim management, and billing. These core systems were built using robust programming languages and customized to specific insurers’ needs.  

Often siloed, legacy core systems appeared to be challenging to meet customer expectations and integrate with new technologies. In this article, we will explain composable architecture, its benefits, and why it is now preferred by many businesses over core systems. 

What are composable insurance software solutions?

Composable software can be described as building components that, once put together, create a comprehensive system providing agility and scalability. Unlike heavy, monolithic systems, composable insurance solutions are built with modules that can be integrated, replaced, and modified as needed. So, what is composable technology? 

Composable solutions are built according to the MARCH architecture principles, which include Microservices, API-first, Cloud-native, and Headless. Now, let’s figure it out. 

• Microservices – applications, often called services or separate modules, are developed to perform specific functions. In insurance, it may be a module for claim management or billing, for instance. 
• API-first – APIs connect microservices with each other and other systems. For example, CRM can be integrated with a core system. 
• Cloud-native – services are usually deployed as cloud-native apps, ensuring scalability as your system grows. 
• Headless – your front end is separated from the back end, where all data and business logic live. That means you can use a single backend to power your microservices. 

Why is this approach trending? The insurance sector is one that is rapidly adopting the MACH architecture approach. With the seismic shift to customer-centric experiences, digitalization, and AI innovation, the industry needs fast time-to-market, modularity, and superior CX. All that can be achieved with composable software solutions. 

Benefits of composable solutions for insurance

As a composable insurance solutions provider, we at DICEUS would like to share more about the benefits of modular architecture for insurance businesses. 

Benefit 1 – Faster time-to-market 

In an era when new insurance products appear at the speed of lightning, it is essential to have the technical capabilities to create, test, and roll them out quickly. 

Benefit 2 – Ability to choose only the modules you need 

Modular solutions fit insurance businesses of any size. Large companies can modernize their systems incrementally. Small or mid-sized select what they need first. For example, a small company with manual processes can start by implementing a policy-creation and issuance module and scale up with additional modules as required. 

Benefit 3 – Seamless customer experience 

The headless architecture of composable solutions ensures a consistent digital experience across all channels, including web portals, chatbots, and mobile apps. Customers can instantly purchase insurance policies, submit claims online, get customer support, and much more.  

Benefit 4 – Cost efficiency 

Cloud-based software reduces operational costs, whereas modularity enables insurers to integrate and pay for only the functionalities they need. 

 Benefit 5 – Integration capability 

Composable software solutions can be easily integrated with other ecosystem solutions for brokers, reinsurers, TPAs, MGAs, data enrichment providers, RegTech platforms, and many more. 

To put it simply, composable solutions are developed and implemented for speed, agility, and growth.  

Example of composable solutions from DICEUS: Policy Administration System

Understanding the current need for insurance businesses to be agile, our team has developed a suite of ready-made software products. It includes Policy Administration System, AI-Powered Underwriting Workbench, Individual and Group Insurance Management Platform, Data Warehouse, Super App, Customer Web Portal, Broker Portal, and Chatbot. 

As an example of a modular software product, we would like to present our Policy Administration System developed for insurance carriers, captives, and captive management companies. It is a ready-made solution that allows insurance businesses to implement and pay for only the functional modules they need. Here’s a list of modules our composable solution provides:  

1. Products: Users can create new insurance products and configure them to meet their needs, specific laws and regulations, coverage types, and more. 
2. Policies: The module allows users to create new policies based on previously created products, specifying coverage and limits.  
3. Templates Center: A central hub for creating, managing, and storing all templates needed to produce various documents.  
4. Billing and invoicing: Here, system users can create and track their invoices and view and filter them by various parameters. 
5. Claims: Users can monitor claims, filter them, and view details.  

Composable architecture is reshaping how insurers build and scale their technology. Traditional core systems served the industry well for decades, but their rigidity now slows the pace of change. Modular, cloud-native tools give insurers the speed, flexibility, and CX improvements the market now demands. With microservices, APIs, and headless design working in sync, teams can launch products faster, integrate new capabilities with less friction, and stay aligned with rising customer expectations. 

For insurers looking to modernize without taking on a full system overhaul, composable solutions offer a practical path forward. They support incremental change, lower operational costs, and allow companies to invest only in the features they truly need. This approach not only reduces risk but also shortens the distance between strategy and execution. 

DICEUS has built its suite of modular products with these challenges in mind. Tools like the Policy Administration System show how insurers can adopt a composable foundation and expand at their own pace. As the industry continues to push toward agility and smarter digital experiences, composable software stands out as the model built for what comes next.