Digital strategy in Insurance

In a recent CBI survey on digitalisation in insurance, 75% of participants stated that they have adopted a digital strategy that has already been, or is planning to be, integrated into their risk management framework.

However, 14% of participants have no digital strategy and no plans to develop one. The CBI note it is good practise to integrate a digital strategy into a firm’s wider business model, governance, and risk management frameworks. 

The main risks and challenges involved with digitalisation are cyber security, data and privacy management, operational resilience and skills shortages. Firms should consider potential capacity issues if they plan to scale up the level of digitalisation within the firm.

The CBI note that due to the developments in digital technologies, a regular review of oversight responsibilities may be necessary. In the survey, firms indicated that responsibility for digitalisation risks usually lies with a specific individual such as the Chief Executive Officer (CEO), Chief Operating Officer (COO) or the Chief Technical Officer (CTO). 

The survey represents approximately 70% of the Irish Insurance sector, with 44 life, non-life and reinsurance firms taking part. Questions focused on current and future digitalisation, and its effect on the insurance value chain.

In the below report KPMG's experts in insurance, technology, risk and regulation have summarised the findings of the CBI survey, and laid out next steps for insurance firms to consider on their digitalisation journey.