Life, annuity, and benefits (L/A/B) executives are prioritizing architecture groundwork over new technology deployment. Carriers with fragmented architecture ownership should expect AI governance to stall. One large carrier cut a projected mainframe migration from more than US$50 million to under US$2 million with automated code-modernization tooling.
Datos Insights advisors see large carriers treating enterprise architecture redesign as a prerequisite for AI governance, not a parallel workstream. Carriers that model only token spend underestimate total AI investment. One professional services firm’s carrier survey estimated token costs account for only 10% to 20% of total AI project cost.
This report sets out eight actions for carriers, from sequencing architecture before AI scale-up to evaluating TPA outsourcing for legacy blocks. Full life cycle cost modeling, for example, will produce more defensible budget requests and fewer downstream surprises.
Clients of Datos Insights’ Life, Annuities, & Benefits practice can download this report.
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