Why Coreless Architecture Is the Key to Scalable AI in Insurance

The insurance industry is at a turning point as artificial intelligence (AI) moves from experimental use to enterprise-wide deployment. However, most legacy core systems weren’t designed to support AI at scale. In response, insurers are now turning to ‘coreless modernization’—a new architectural approach that enables AI-driven innovation without the costly and risky overhaul of existing core systems.

Coreless doesn’t eliminate the core—it decouples key business capabilities from it. This is achieved through a semantic orchestration layer that operates across systems, using real-time data, event-driven automation, and composable AI services. As a result, functions like underwriting, claims routing, and fraud detection can be executed efficiently outside the core system, while maintaining auditability and compliance with bodies like the NAIC.

This shift is powered by three key trends: the maturity of data fabrics, the rise of agentic AI for complex decision-making, and the adoption of composable architecture. These advances allow insurers to launch new products, streamline partner onboarding, and meet regulatory demands faster—all without replatforming their core systems.

Some carriers have already seen success by orchestrating AI-driven workflows around their existing infrastructure. With sub-400 millisecond response times and reduced policy issuance windows, these early adopters demonstrate how coreless modernization can deliver real results. For insurers facing pressure to scale AI within legacy environments, coreless architecture offers a future-ready solution that builds on what works and enables what’s next.