How insurers succeed in the digital transformation despite cost pressure

The insurance market is under pressure: costs need to fall, technologies need to be introduced and organisations need to react more flexibly to new risks. Many insurers have set up ambitious transformation programmes to achieve this. However, our study "Insurance transformation: The new agenda" shows that only 25 per cent of these initiatives fully achieve their goals. At the same time, an overwhelming majority plan to reduce their costs by at least ten per cent by 2030. The challenge: without a successfully implemented transformation, this goal often remains out of reach.

To achieve this, insurers are investing primarily in technology: around 25 per cent of their current operating expenditure is spent on digitalisation projects. They also set aside budget for more efficient processes, a leaner infrastructure, the development of expertise and measures aimed at complying with regulations.

But successful insurers do more than just invest money in new tools, as our study also shows. They are not satisfied with one-off projects, but are putting their transformation on a stable footing with these five measures:

1. They formulate a clear vision that combines transformation and cost strategy with the overall business.
2. They anchor responsibility at management level and create transparency throughout the organisation.
3. They improve the quality of their data in a targeted manner in order to be able to make reliable decisions on this basis.
4. They scrutinise processes carefully before introducing technologies or involving external partners.
5. And they orientate their corporate culture towards change and sustainable results.

The English-language study "Insurance Transformation: The New Agenda" is based on a global survey of over 250 decision-makers in the insurance industry. It shows concrete ways in which companies can reduce complexity, set priorities in a targeted manner and ensure sustainable success.

KPMG supports insurers with industry expertise, implementation experience and a focus on the people behind the transformation.