Digital Transformation in Insurance
What is digital transformation in insurance?
The insurance industry, known for its complex regulations and legacy systems, is undergoing a paradigm shift. With new disruptive technologies and tech-first challenges, long-standing providers are struggling to keep pace. The growing technology landscape and lack of end-to-end automation are increasing complexity and limiting innovation and growth. As a result, leading insurance firms are recognizing the need to adopt digital transformation.
Digital transformation in insurance is a strategic approach to modernize insurance services, improve efficiency, customer experience, and drive innovation by leveraging a range of different tools. It is more than simply adding new features or point solutions to existing systems. By employing technologies like process orchestration, insurers can iteratively modernize their legacy systems, and connect endpoints such as risk models, enterprise resource planning tools, and humans-in-the-loop to build seamless, customer-centric experiences. This allows for faster development cycles and the ability to create new products and services that cater to evolving customer needs.
Digital transformation helps improve operational processes in insurance, eliminating inefficient tasks and human errors that lead to costly delays and mistakes. This newfound efficiency translates into faster processing times for applications, claims, and policy changes, ultimately creating a smoother customer experience.
But digital transformation isn’t just about efficiency; it’s about empowering insurers to navigate the evolving market. This agility is crucial for staying ahead of the competition. Insurance companies need to be able to develop innovative new products and services, personalize offerings based on individual customer needs, and respond swiftly to any changes in the regulatory landscape.
Digital transformation is the discipline that equips insurers with the tools to achieve these goals, ensuring they remain relevant and competitive in the years to come.
[ 96%]
of all IT decision-makers and business leaders say automation is vital to digital transformation
The benefits of digital transformation in insurance
Digital transformation unlocks a range of benefits for insurance companies by fundamentally transforming how they operate and interact with customers.
Improved operational efficiency
By automating repetitive tasks and streamlining workflows across processes like onboarding, policy management, and claims handling, insurers can eliminate redundancies and minimize human errors. This frees up valuable staff time for more complex tasks, boosting productivity and potential cost reductions.
Streamlined customer journeys
Another key advantage is simplifying customer journeys. Imagine a workflow where customers can apply for a new policy online, with automated steps guiding them effortlessly through selecting a personalized policy, submitting an application, verification, and approval. This seamless process translates to happier customers who appreciate the speed and ease of doing business with you.
Accelerated time to market
Digital transformation accelerates time to market for new products and services. With the right foundation, insurers can launch a new insurance offering to grow their revenue and customer base. Process orchestration helps by streamlining development processes across departments, increasing the number of reusable building blocks and resources so you can bring your new product to market significantly faster. This agility allows you to capitalize on market opportunities quickly and stay ahead of the competition with innovative products that meet evolving customer needs.
Scalable workflows
Finally, digital transformation helps insurers build scalable workflows. As market trends and customer demands shift, the ability to adapt your processes quickly becomes crucial. With process orchestration as a foundation, you can easily modify or scale processes to respond to these changes and seamlessly accommodate increased volumes as the company grows.
Total shareholder returns
[ 8.1%]
Digital leaders
vs.
[ 4.9%]
Digital laggards
Challenges of digital transformation in insurance
While crucial for success, digital transformation in insurance presents a complex challenge. Insurers already grapple with rising costs, evolving customer needs, a changing workforce, outdated systems, and shifting regulatory requirements – all factors that can block a digital transformation initiative from success.
The traditional insurance quote generation process is time-consuming
Lengthy approvals and constant communication loops stall progress, frustrating customers and potentially impacting a brand’s reputation. However, adhering to regulatory requirements can introduce additional approval steps that are essential to staying compliant.
Manual quote generation pulls valuable resources away from closing deals
Insurance agents can get stuck correcting errors and chasing approvals, leaving them with less time to focus on what they do best: finding and selling the best policy for their customers.
Legacy systems often rely on spreadsheets and documents
The lack of up-to-date data creates a high risk of using the wrong dataset across systems. For example, there is a risk of an insurance agent quoting a price based on an old spreadsheet, which can result in miscalculations that erode profitability.
Data management is decentralized and error-prone
With siloed systems, the chances of errors like incorrect data entry and price discrepancies skyrocket. This makes the quote generation process error-prone, potentially leading to customers being quoted the wrong price and ultimately switching to competitors.
Digital transformation in insurance use cases
Claims processing automation
Traditional, manual, or semi-automated claims processing workflows in insurance are cumbersome and error-prone, leading to operational inefficiencies and poor customer experiences. In today’s competitive landscape, insurers need to prioritize a swift and efficient claims resolution process to retain policyholders while complying with regulations and internal policies.
Automated claims processing coupled with robust, multi-channel communication strategies offer a compelling solution. By leveraging automation for repetitive tasks like document validation, insurers can significantly enhance operational efficiency and expedite claim settlement timeframes. Artificial intelligence and machine learning can reduce the number of claims that need additional verification by assessing the claim against the information provided. This translates to reduced wait times, fewer errors, and improved customer and employee experiences.
Underwriting automation
Underwriting automation is a key pillar of digital transformation in insurance, thanks to its ability to significantly enhance operational efficiency by streamlining the application processing workflow.
Automating data-driven tasks, such as debt-to-income ratio calculations and risk assessments, minimizes the potential for human error and expedites processing times. This results in faster policy issuance for qualified applicants.
Underwriting automation not only accelerates the process but also enhances risk assessment and exposure. Leveraging advanced analytics, automated systems can ingest data from diverse sources, including credit reports, financial statements, and historical insurance claims to build custom risk profiles. This allows insurers to identify previously unseen patterns and correlations, leading to more accurate risk predictions and insurance outcomes.
Machine learning and artificial intelligence (AI) algorithms act as the engine of this enhanced risk assessment. These algorithms continuously learn and adapt based on real-world data, refining their predictive capabilities over time.
Furthermore, tools like AI-powered computer vision and optical character recognition (OCR) can empower the underwriting process. AI can automate complex data analysis, while OCR streamlines data extraction from documents, eliminating manual data entry errors. This combined approach provides underwriters with a more holistic view of the applicant, leading to better-informed risk assessments and ultimately, improved business outcomes.
Insurance quote automation
The traditional insurance quote generation process is prone to errors and a drag on efficiency. It can involve manual data entry and juggling information across multiple systems. This can lead to delays, frustrated customers, and compliance issues.
Automation transforms insurance quote generation. Technologies such as Robotic Process Automation (RPA), Optical Character Recognition (OCR), and Machine Learning work together to streamline the process. AI can help collect customer information and generate quotes, eliminating the need for unnecessary paperwork. Data analytics tools can identify potential customers and personalize quotes to their needs.
Insurance quote automation brings several key benefits. First, it eliminates paper and manual data entry, saving time and resources. Second, AI chatbots can answer customer queries and generate quotes 24/7, improving customer experience. Finally, automating tasks frees up employees to focus on sales and other strategic initiatives, boosting overall productivity and sales.
Insurance document automation
Accurate information is essential for effective risk assessment and policy management in insurance. Traditionally, this data is collected and processed manually from various sources like application documents, claims forms, medical records, and supporting documentation such as photographs. This is not only time-consuming but also prone to errors.
Insurance document automation leverages technologies like Optical Character Recognition and Machine Learning to automate data capture from documents and integrate it seamlessly into core systems. OCR extracts data from scanned documents, while ML algorithms validate and categorize the extracted information. This reduces processing time and human error and frees employees to focus on tasks requiring human expertise, such as analyzing complex data points for risk assessment.
Insurance data automation
Manual data entry is a major source of insurance errors. Insurance data automation, including automated data capture and processing, can significantly improve data accuracy enabling insurers to automate various data-related tasks, bringing numerous benefits to the company and its customers.
One of the most impactful advantages is the boost in efficiency. Automating tasks like data entry, document processing, and claims handling frees up employees from repetitive work, allowing them to focus on more complex tasks requiring human expertise, such as underwriting analysis or customer service interactions. This not only leads to faster processing times for applications, claims, and policy changes but also improves overall productivity.
Automate compliance checks
Insurance companies operate within a complex regulatory environment that demands constant attention. Maintaining compliance is a significant challenge. Automated compliance checks offer a robust solution by streamlining processes and mitigating risks. These solutions replace tedious manual checks with AI-powered tools that continuously monitor systems for compliance issues. These tools can expedite audits by automatically identifying potential issues and assigning them to relevant teams.
Automated compliance checks offer several key benefits:
- A centralized approach to compliance procedures, with a clear and easily accessible audit trail that records every activity and decision.
- Automated tools can categorize and protect specific types of data based on relevant regulations. This ensures sensitive information is handled appropriately, reducing the risk of costly breaches.
- The system continuously analyzes data throughout its lifecycle, generating alerts for potential violations. This proactive approach allows for swift corrective action, preventing further issues and ensuring ongoing compliance.
Insurance digital transformation trends
Insurance process orchestration
The insurance industry is on the cusp of a major transformation driven by process orchestration. Insurers are actively seeking solutions to streamline operations and meet evolving customer demands.
However, digital transformation initiatives have potential challenges. The mix of legacy systems, point automation, and isolated new technologies creates disconnected processes. As a result, insurance companies often deal with siloed systems and fragmented workflows, leading to inefficiencies and poor customer experience. These processes are also highly dependent from end-to-end and across different departments and even lines of business. This complexity makes it difficult to align teams on the desired business outcome and the technical reality needed to achieve it.
Insurance process orchestration tackles this challenge head-on by connecting endpoints, breaking down data siloes, and creating a unified view that centralizes core functions, such as underwriting, claims processing, customer services, and more. This translates to smoother operations, faster processing times, and significant cost savings.
Beyond efficiency gains and increased return on investment, process orchestration empowers insurers with unparalleled flexibility. The ability to integrate any technology across their operations ensures streamlined processes that not only benefit the company but also delight customers and employees. This adaptability and composability allows insurers to innovate at scale and easily adjust to changing market dynamics or increasing business volume.
Process orchestration acts as a future-proof system of innovation for insurance companies, ensuring they remain competitive and successful in the years to come.
Hyperautomation technology for digital transformation in insurance
Successful digital transformation relies on the successful orchestration of people, systems, and devices. It requires the strategic use of a combination of digital technologies such as AI, machine learning, cloud computing, real-time analytics, robotic process automation, low code, and API integrations.
Together, these interconnected technologies help insurance companies create a smart, scalable foundation that fosters collaboration, orchestrates processes, and supports data-backed continuous improvement.
Hyperautomation technology in insurance
Operations in the insurance industry are incredibly complex. Even with successful digital transformations, organizations likely contend with managing multiple insurance technologies, homegrown systems, and point solutions. Hyperautomation technologies help insurance companies choreograph advanced workflow patterns to further optimize these automations.
The key is using process orchestration to connect everything together and more efficiently coordinate systems, applications, data, and human work.
Additional Resource
Dive deeper into hyperautomation.
The Ultimate Guide to Building Your Hyperautomation Tech Stack
Strategy for implementing digital transformation in insurance
Rising customer expectations, a competitive landscape, and evolving regulations demand a proactive approach to digital transformation. However, navigating this transition and choosing the right starting point can be daunting.
Here’s a strategic roadmap grounded in automation to guide your insurance firm towards a successful digital future.
Start with a Proof-of-Concept (PoC)
Starting with a small-scale project allows you to test the waters of automation, focusing on a well-defined task like claims processing or policy renewals. Think of it as a pilot program.
This approach offers several benefits:
- Reduced risk: Allows you to identify and address potential challenges before large-scale implementation.
- Quick results: Delivers early success stories, boosting motivation and buy-in from stakeholders.
- Learnings and refinements: Provides valuable insights for optimizing your automation approach.
Move on to a ‘Lighthouse project’
Once your PoC validates the potential of automation, it’s time to embark on a more ambitious project – the ‘Lighthouse project’. This project showcases the power of automation to your entire organization. For example, you can consider automating the entire claims process, from submission to resolution. This not only improves customer experience but also frees up time for your workforce. This project should demonstrate:
- Tangible benefits: Focus on metrics that matter, like faster claim settlements, reduced development times, and increased customer satisfaction.
- Scalability: Choose a project that can be replicated across other departments, paving the way for broader transformation.
Establish an Automation Center of Excellence (CoE)
As you navigate your automation journey, you’ll need a dedicated team – the Automation Center of Excellence (CoE). This team of experts acts as the backbone of your automation strategy. They will:
- Evaluate solutions: Assess existing automation tools and identify the best fit for your needs.
- Provide training: Equip your workforce with the necessary skills and reusable building blocks to leverage automation effectively at scale.
- Empower teams: Assist departments in launching and managing their own automation initiatives.
The CoE shouldn’t act as a bottleneck but rather an accelerator. Their goal is to foster a culture of innovation where teams feel empowered to experiment and own their automation projects.
Scale automation across the organization
With successful pilot programs and a strong CoE in place, it’s time to scale your automation efforts. This could involve:
- Expanding existing projects: Taking successful PoCs and replicating them across different departments.
- Launching new initiatives: Identifying additional processes ripe for automation, like underwriting or fraud detection.
- Investing in innovation: With freed resources and reusable building blocks, you can find potential areas to innovate and further differentiate your offers from the competition.
The extent of this expansion depends on your company’s specific needs for change. Some firms might prefer a targeted approach, focusing on automating high-impact areas. Others might choose a platform-wide implementation, transforming operations across the entire organization. Regardless of the approach, maintaining momentum is crucial.
Empower your teams to drive automation
Automation is about more than technology; it’s a cultural shift. Empower your workforce to be active participants in your digital transformation journey. Tools like Camunda’s Process Orchestration Maturity Model can assist you in assessing your organization’s readiness for automation and identifying strengths and areas for improvement.
Here’s how to empower your teams:
- Provide training and resources: Equip employees with the knowledge and tools needed to leverage automation effectively.
- Encourage experimentation: Foster a culture of experimentation where teams feel comfortable trying new ideas and learning from their experiences.
- Celebrate achievements: Recognize and reward teams for their contributions to your automation journey.
By embracing a “start small, scale smart” approach, establishing an Automation CoE, and empowering your teams, you can leverage automation to streamline operations, enhance customer experience, and drive your insurance firm toward a prosperous digital future.
Throughout your digital transformation journey, process orchestration provides a foundation for agility and innovation, connecting people, systems, and devices from end-to-end to deliver better customer and employee experiences. This holistic approach streamlines your digital transformation journey.
Insurance digital transformation case study

Veterans Affairs
Find out how Veterans Affairs accelerated benefits delivery by 30% using Camunda’s process orchestration to automate claims management.

Generali Insurance
Read how Generali Switzerland implemented Camunda to automate software deployment, achieving better auditability, regulatory compliance, and development speed — with no prior knowledge of BPMN or Camunda.

Cardinal Health
See how Cardinal Health is using Camunda’s workflow orchestration to automate patient enrollment processes and improve access to life-saving therapies, accelerating patient journeys and enhancing overall care delivery.

SV Informatik
Learn how SV Informatik automated tasks with Camunda to speed up workflows and delight customers. Even claims handling got smoother, with 80% of storm damage claims handled automatically, with real-time insights that keep improving processes further.

Helsana
Read the story of how Helsana, a major Swiss health insurer, deployed Camunda in just two days to automate a self-service sign-off process. This quick and easy implementation resulted in 15,000 applications within the first three months, demonstrating the value of process orchestration.