For 39% of UK insurers and managing general agents (MGAs), competitive advantage is the primary motivation for digital transformation, according to Covernet’s survey, yet only 61% say their current technology meets functional requirements and 39% report neutral or poor satisfaction.
Covernet said all UK insurers recognise digital platforms as vital to their operations.
The study shows that 88% of respondents consider digital platform adoption important or very important for their business. The research also indicates that cost savings drive transformation for 15% of respondents, while 21% are primarily motivated by customer demand.
Platform selection involves core systems that cover pricing, underwriting, distribution, claims and finance, with long-term operational consequences.
According to the report, obtaining full value from such systems requires investment in discovery, requirements gathering, proofs-of-concept, and change readiness. In many cases, these tasks are not a full-time responsibility and are managed alongside business-as-usual activities, making structured evaluation more difficult and raising the potential for compromises.
Jim Campbell, chief commercial officer at Covernet, said the industry is caught between digital aspiration and operational reality.
“Insurers understand that technology is critical for competitive advantage, but too many are settling for platforms that don't fully deliver on their business requirements,” said Campbell. “This disconnect suggests many firms are rushing into digital transformation without properly evaluating whether their chosen solutions can actually support their strategic objectives.”
Campbell added that the next phase of digital change must ensure chosen systems improve operations instead of duplicating inefficiencies.
“Choosing a core platform is a difficult call and it deserves dedicated attention. If teams don’t fully invest in the process - and for most this isn’t a full-time role - it’s easy to miss what really matters to underwriting performance and customer experience,” he said.
With 97% of insurers now using digital platforms to some degree, the focus must shift from adoption to optimisation.
Do you think insurers are focusing too much on adopting digital platforms without ensuring they meet long-term operational needs?
