Sourcing Best Practices in Life and Annuity (L&A) Insurance Market 2025

The Life and Annuity (L&A) insurance market is fundamentally shifting in sourcing approaches, moving beyond legacy cost-saving models to prioritize agility, innovation, and resilience. This report examines how macroeconomic uncertainties, talent shortages, and evolving customer expectations are prompting insurers to modernize core systems, adopt cloud-based platforms, and expand digital capabilities. The rise of generative AI, regulatory demands, and the need for scalable digital operations are key drivers influencing sourcing decisions.

Insurers are embracing strategic models such as cloud XaaS, global capability centers (GCCs), and co-sourcing to meet organization goals while retaining control and accelerating innovation. The report outlines sourcing best practices across IT applications, infrastructure, platform services, and consulting, while also highlighting geographic delivery models, talent hubs, and supplier engagement strategies. With a focus on modular architectures, outcome-based KPIs, and embedded AI capabilities, the study provides a roadmap for insurers and providers to build future-ready sourcing ecosystems.