Digital transformation in Insurance – Essential Insurance technology you need to know
05/06/2020
Meanwhile, not only new players, new business models, innovative insurance technology and high customer expectations are forcing the insurance industry to perform a massive transformation in the way business is done, but especially the novel Coronavirus pandemic. Agents, brokers, and financial advisors will likely face many risk management and logistical challenges. Insurers may have additional considerations when accommodating claims adjusters, who often need to travel to perform their jobs (Deloitte 2020). It is currently more crucial than ever before for insurers to use insurance technology and push digital transformation forward in order to be better positioned in the short term, protect staff and contain the spread of COVID-19.
The relevance of the topic was already evident before the pandemic: A survey from Accenture in 2019 revealed, that 90% of insurance executives have a coherent, long-term plan for insurance technology innovation in place (Accenture 2019). One of the key arguments is that by reducing the role of the broker and changing the traditional means of calculating rates, technology-oriented insurance service providers are often able to cut the cost of insurance by nearly 50 percent.
But what kind of technologies actually exist for the purpose of digital transformation in insurance? What are their benefits?And how can digital transformation in insurance be successfully managed?
For this purpose, Briisk identifies the following four key insurance technology components for effective digital transformation in insurance.
Cloud Technology
Cloud technology is presumably one of the main enablers for successful digital transformation in insurance and continuation of business operations during COVID-19. Collaboration in a cloud environment gives businesses the ability to communicate and share more easily outside of the traditional methods, resulting in more flexibility of work practices and efficient collaboration (Queensland Government 2017). Especially for the insurance industry, cloud insurance technology provides a big opportunity to overcome hurdles related to the lack of IT collaboration and burden of legacy systems. According to a recent study by Accenture, there are several reasons for the usage of cloud technology in insurance including:
1. Improves speedto market through greater IT agility and shorter project implementation time. Automate certain aspects like enrolment processes, claims management, underwriting and much more.
2. Innovate effectively and accelerate business growth by testing and deploying new MVPs quickly, meeting the evolving needs of the business and market.
3. Reduce operating costs for licensing, hardware and the maintenance of complex legacy systems.
4. Expand globally, standardise business across multiple geographies, foster international relationships and integrate with other companies via APIs. (Accenture 2018)
Intelligent Automation systems detect and produce vast amounts of information and can automate entire processes or workflows, learning and adapting as they go.The results are not only cost savings, but also faster in action and decision (e.g. fraud detection), have better outcomes (e.g. portfolio optimisation) and compliance (e.g. automate compliance and regulatory activities) (Deloitte). Therefore, certain insurance processes that have been resistant to change for many years can now become automated and used to gain further insights via analytics.
Data Analytics
Data is at the heart of each insurance firm. However, most insurers are sitting on terabytes of decades-old data that is disconnected and stored on disparate systems and difficult to analyse. Data Analytics are capable of providing insights from this data, to support the decision making process, to tackle the most complex business problems and to address the growing market competition (Deloitte 2018). New data analytics capabilities and an increasing amount of data, enable to create deeper insights, make predictions and generate recommendations.
Over the last few years, most insurers have invested in Data Analytics solutions and understand that investing in Data Analytics is key to survive in a fast changing environment of digital transformation in insurance. DXC identifies data analytics as one of the key elements of digital transformation in insurance: “ability to perform detailed analytics for better business decision making depends on having a digital platform that can access enterprise-wide data and take advantage of cloud-first capabilities such as machine learning and artificial intelligence” (DXC 2018).
A way to practically enable data-driven insights through deep analytics is to orchestrate the flow of data through the various systems into a central data lake for analysis without disturbing the underlying systems of record, so-called digital decoupled architecture.
Digital Strategy
To benefit from all the components above, a course to transformation has to be set and digital innovation has to be promoted across the entire value chain. One of the most critical elements to successful digital transformation in insurance is the right mindset (Forbes 2019). Customer experience should be the heart of all strategy and decisions. According to Jeff Bezos, “The No. 1 thing that has made us successful by far is obsessive, compulsive focus on the customer as opposed to obsession over the competitor.”(Businessinsider 2018).Moreover, rapid progress has to be enabled via proactive measurements and the encouragement of rapid product creation through MVPs instead of seeking perfection.
Summary: Digital Transformation in Insurance & Insurance Technology
But how can you avoid business interruption and drive digital transformation at the same time? Replacing legacy systems is often too costly, complicated and expensive. Therefore, one of our recommended approaches is to provide a layer that can orchestrate the flow of data between the legacy systems and the new digital disruption channels. As time goes by, the legacy systems are decommissioned as the orchestration layer becomes more and more feature rich. Thus, the legacy systems are replaced bit by bit.
To sum up, the insurance industry needs to become ready to stand the pressure of new players, new business models and high customer expectations, as well as the current COVID-19 pandemic. This forces the insurance industry to use innovative insurance technology to perform a massive transformation in the way business is done – and the only answer is a persistent digital transformation in insurance.
The pace of technological change is accelerating—and so is the consolidation of the industry. As we enter the second quarter of 2025, mergers and acquisitions (M&A) continue to reshape the global tech landscape, including the fast-evolving insurtech space. For insurtech companies, M&A trends aren’t just background noise—they’re critical signals. Whether you’re preparing for growth, seeking […]
The insurance industry is on the cusp of a transformative revolution, driven by advancements in artificial intelligence (AI). At the heart of this change are generative AI and agentic commerce, two concepts set to redefine customer journeys and the buying process. Understanding generative AI and agentic commerce in insurance Generative AI refers to AI systems […]
The future of business technology is rapidly evolving, with concepts such as AI agents and automation sparking significant interest across industries. The potential move away from traditional models, like SaaS (Software as a Service), isn’t just a topic for the tech industry—it’s set to reshape how businesses, including insurers, operate and innovate. AI agents: Redefining […]
The insurance industry is rapidly evolving, and customer expectations for fast, seamless service are higher than ever. Chatbots have become an essential tool for insurers to improve efficiency, enhance customer experience, and reduce costs. However, not all chatbots are the same. Businesses can leverage three distinct types—scripted chatbots, generative AI chatbots, and agentic AI chatbots—each […]
In a world where technology drives every aspect of business, Briisk stands as a trailblazer in transforming the insurance industry. Established with the vision of simplifying insurance processes, Briisk has quickly emerged as a market leader in digitising insurance products and streamlining distribution. At Briisk we empower businesses to provide seamless, innovative, and efficient insurance […]
In an ever-evolving digital landscape, industries constantly seek innovative ways to enhance their services, and the insurance sector is no exception. Embedded insurance is emerging as a potential game-changer, offering significant benefits to customers and companies. It is not just a trend but a transformation that has already begun to reshape the insurance landscape. What […]
In today’s fast-paced world, data analytics has become an invaluable tool for businesses across various industries. Underwriting management plays a pivotal role in the insurance sector, and data analytics is transforming how insurers make informed decisions and streamline their operations. Opportunities in Data Analytics for Underwriting Management: Challenges in Data Analytics for Underwriting Management: Data […]
In an era of digital innovation, the insurance industry is undergoing a profound transformation because of the introduction of innovative technology. Exploring the impact of technology on insurance claims processing, highlighting the evolution of an industry, and adapting to the demands of the digital age. The Traditional Insurance Claims Process: A time-consuming challenge Historically, insurance […]
Insurance is fundamental to our lives, offering protection and security when the unexpected strikes. This article will explore the different types of insurance and their vital roles. We will also delve into insurance history, including the Great Fire of London and the influential figure often credited as the father of insurance, Elizur Wright. Additionally, we will […]
The insurance industry, often referred to as the backbone of financial security, serves as a safeguard against uncertainties and risks that life throws our way. As we examine the current state of the insurance industry, it becomes evident how important insurance really is. The industry is undergoing a transformative period due to emerging technologies and […]