Across the UK and Ireland, insurers are facing a structural stress test. Customer expectations are rising, regulators are sharpening their focus, and yet the industry’s foundations - from legacy tech to outdated processes - are showing their age. According to Will Pritchett (pictured), Accenture’s insurance lead in the UK and Ireland, insurers must confront internal transformation head-on or risk being overtaken by more agile competitors.
Three challenges stand out: product literacy, accessibility, and value for money. "There is still a gap to bridge in helping customers understand what their insurance covers and why it matters," Pritchett said. Digital access, too, is lagging. "The ability to learn about your product or check coverage at a time that suits you, without waiting an hour for a call centre, is still not a universal reality."
Underlying all of it is cost pressure. "Insurers must become the most efficient businesses they can be," he said. That includes simplifying the customer journey, reducing manual friction, and investing in back-end systems that support real-time service.
Pritchett also pointed to growing pressure on insurers to deliver better outcomes for long-term savers. “We’re trying to create a world in which people can retire with the quality of life they expect,” he said. “But we’re not there yet. Advice is too hard to access, digital tools are still limited, and many people believe they’re covered when they’re not.”
He argued that insurers must take more responsibility for bridging this gap. “Auto-enrolment has helped, but it’s created a false sense of sufficiency. Engagement has to go deeper, supported by better data, smarter product design, and accessible guidance that fits people’s lives.”
This, he said, is part of the same operational reinvention challenge. “It’s not just about better tech, it’s about how insurers help people plan, act, and ultimately trust the system to deliver on its promises.”
Artificial intelligence is now on every insurer’s roadmap, but progress is fragmented. "There’s no shortage of pilots and proofs of concept," Pritchett said. "But to truly scale AI, insurers need to reimagine how they run. That includes data quality, end-to-end processes, and operating model redesign."
He added that many insurers underestimate how embedded AI already is via third-party tools. "The industry is stretched between running and changing the business. But responsible scaling demands new talent, fresh governance, and coordinated enterprise-wide action."
That means getting beyond the tech team. "AI isn't just a tech initiative. Risk, HR, and corporate functions all need a seat at the table," he said. "The shift we're seeing is from isolated innovation to integrated transformation."
Customers increasingly compare insurance experiences to those in banking and retail. That comparison is not always flattering. "Insurers know how difficult it still is to buy, amend or claim," Pritchett said. "It's not underestimation, it's the reality of decades of legacy systems, acquisitions and tech debt."
Transformation is happening, but slowly. "Modernising systems and unlocking data takes time and sustained investment. Many are making progress, but it's a multi-year journey," he said.
Looking ahead, 2026 could be a watershed moment. "Markets are demanding sustainable, competitive businesses," Pritchett said. "That means building cost structures and digital capabilities that can withstand economic, demographic and climate pressures."
Returning to the core challenge of transformation, Pritchett observed: "The industry's perceived hesitation to innovate isn't a lack of ambition. It's the colossal task of unwinding decades of legacy in a highly regulated, trust-based environment."
True transformation, he argued, must be end-to-end. "It’s not just adopting new tech. It’s reinventing the internal engine - talent, processes, and governance included. AI is advancing quickly, but scaling it responsibly in insurance is one of the industry’s biggest challenges."
For insurers prepared to take that on, the reward is significant. "This isn’t just about efficiency. It’s about credibility, and whether the industry can keep its promises in a world that’s rapidly changing."
