DIGITAL IS DISRUPTING INSURANCE: Transform Your Infrastructure to Win in the Digital World.

Position::A Forrester Consulting Thought Leadership Paper

Project Director: Andia Vokshi, Market Impact Consultant Contributing Research: Forrester's Infrastructure & Operations research group and eBusiness and Channel Strategy research group

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Customer obsession is the driving force for digital transformation in every industry. However, some industries, such as finance/insurance, have decades of legacy technology they must evolve to become more agile and customer-engaged. Third parties can assist these efforts with significant experience and expertise. In 2017, Ensono commissioned Forrester Consulting to evaluate the status of digital transformation in the insurance industry. Forrester conducted an on-line survey with insurance decision makers responsible for technology infrastructure to explore this topic.


* The insurance industry is well on its way to going digital.

Digital transformation has become the norm for companies across all industries, and insurance is no different. Nearly 70% of insurers in our study reported that their company is on the journey to digitally transform their infrastructure. Their top goals in this process are to better meet rising customer expectations and to derive greater insights through data.

* Digital transformation is essential but challenging and expensive. Insurers understand the necessity to transform their infrastructure, but this process comes with significant challenges. Each stage presents its own difficulties, but the largest challenge faced across the board is cost: Nearly all insurers surveyed (99%) face challenges funding digital initiatives, controlling rising costs of software licenses, and addressing rising support and maintenance costs for infrastructure and software.

* Insurers need help transforming. The insurance industry faces unique challenges when it comes to digital transformation, and they can't--and should not need to--go through this process without help. Over three quarters of our respondents said they would get value from consulting services (80%), licensing expertise (80%), managed cloud services (78%), and migration services (78%) in aiding their digital transformation acceleration. Getting assistance from key partners is crucial to success in the transformation process.


Digital touchpoints permeate every aspect of your customers' lives, resetting their expectations to a higher level each time they are exposed to a better digital experience. These expectations come from other industries that do a better job delivering great customer experiences, such as traditional retail banks, direct banks, and credit card providers. As a result, digitally savvy customers increasingly expect insurers to meet their real-time information needs whenever, wherever, and on whatever device that's convenient to them.

The processes of most traditional insurers languish in today's digital world. They struggle across the board with...

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