Written by Sabine VanderLinden

As I stood before the audience at this year’s Global Insurtech Summit 2025, one statistic captured everyone’s attention: 74% of insurance leaders now rank digital transformation as their top priority. Having spent years at the intersection of insurance and innovation, I can tell you this isn’t just another industry's maybes – it’s a fundamental shift in how we think about protecting people and businesses as digitization is moving at pace.

The Global Insurtech Summit is an exclusive gathering that took place at the end of April at the prestigious Minister Building in London, United Kingdom, organized by Fintech Global. This event attracts hundreds of vetted senior decision makers from across Europe, including market leaders, insurance company leaders, insurtech innovators, tech innovators, the most disruptive insurtech founders, disruptive insurtech founders, active insurtech buyers, sellers, and organisations driving digital insurance and impact insurtech. It was a unique opportunity to connect with friends, engage, and explore with the industry’s top voices and organisations shaping the future of insurance.

By visiting the dedicated expo area, attendees saw leading-edge innovations firsthand and heard directly from industry experts about the latest advancements in digital insurance. The event provides high-impact business connections, valuable information on distribution challenges faced by organisations, and a showcase of how market leaders implement digital transformation strategies to achieve business objectives and future success. As one of the most critical events in the industry, missing this summit, at the core of Lloyd's of London market, meant missing the chance to gain a glance at the industry's ongoing evolution.

A View from the Frontlines - The Human Element, Our Greatest Asset

Let me share something that resonated deeply during our panel discussion. Frank Eijsink, my stage colleague from NN Group International, revealed an insight that perfectly encapsulates our industry's transformation: “Even though 60% of our insurance sales leads come through digital channels, almost every customer eventually ‘pushes a button' to speak with a human advisor.” This simple observation tells us something profound about the future of insurance – while digital transformation is essential, human connection remains irreplaceable.

I've seen this pattern repeat across markets and segments. The winning formula isn't about choosing between digital and human – it's about harmonizing both. At Alchemy Crew, we call this “augmented insurance”: using technology to enhance, not replace, human expertise. This approach helps build trust with customers by ensuring that while they benefit from digital efficiencies, they also have access to genuine human empathy and support. The benefits of this strategy are clear: organizations can achieve significant returns on their investments and navigate challenges more effectively by implementing analytics and innovative practices.

A Re-Introduction to Why Digital Transformation

Digital transformation is a fundamental shift in how businesses operate and deliver value to their customers. At its core, digital transformation involves integrating digital technology into every aspect of a business, leading to significant changes in processes, culture, and customer interactions. This transformation is not just about adopting new technologies but also about fostering a culture of continuous improvement and innovation.

Shifts in consumer demand, especially following the pandemic, are significantly influencing digital transformation efforts. Rapid changes in demand have necessitated that organizations adapt to evolving consumer expectations, impacting their operational strategies.

Organizations must embrace a cultural change, encouraging employees to challenge the status quo, experiment with new ideas, and learn from failures. This mindset is crucial for businesses of all sizes, from small startups to large enterprises, to stay competitive in today's rapidly evolving market. The rise of gen AI tools and generative AI tools has made it easier for companies to increase efficiency, improve customer experience, and create new opportunities for growth. These tools enable businesses to automate routine tasks, gain deeper insights from data, and deliver more personalized services to their customers.

In essence, digital transformation is about leveraging technology to enhance human capabilities and create a more agile, responsive, and customer-centric organization. By embracing this change, businesses can not only survive but thrive in the digital age.

The AI Revolution: From Brand-Driven to Value-Driven with Generative AI Tools

During our panel, Steven Mendel, founder of ManyPets, made a prediction that I believe will reshape our industry: "the rise of autonomous AI agents will fundamentally change how consumers choose insurance." As someone who works with both incumbents and startups, I can confirm we're already seeing this shift. The days of relying solely on brand recognition and marketing budgets are numbered. AI adoption is changing consumer behavior by enhancing productivity, engagement, and necessitating evolving workplace strategies.

This transformation excites me because it increasingly democratizes innovation. Today, even professionals without technical backgrounds can utilize no-code and artificial intelligence tools to build new insurance solutions. I'm particularly passionate about this democratization because it means great ideas can come from anywhere in an organization, not just the IT department. I am myself on the path of learning Vibe Coding.

A New Model for Innovation and Economic Growth

One of my core beliefs, which I shared at the summit, is that we need to reimagine how insurers and startups work together. The traditional corporate venture capital model isn't always the answer. Instead, I'm advocating for what we call the “venture client model,” where insurers become early adopters of startup solutions rather than just investors.

“This model allows corporations to work with startups without financial investment, focusing instead on commercializing new solutions,” I explained to the audience. Different companies have varying focuses when it comes to innovation strategies, and this approach can be tailored to meet those specific operational priorities. It's a win-win approach that I've seen accelerate innovation while managing risk – something particularly crucial in our trust-based industry.

Improving Operational Efficiency

Today, improving operational efficiency is crucial for businesses to stay competitive. By streamlining processes, reducing waste, and increasing productivity, companies can achieve significant cost savings and enhance their overall performance. Key performance indicators (KPIs) such as cost savings, cycle time reduction, and defect rate reduction are essential metrics for measuring operational efficiency.

Leveraging generative AI tools can significantly enhance operational efficiency. These tools automate repetitive tasks, provide predictive models for decision-making, and offer valuable insights from operational data. For instance, government agencies can use AI technology to optimize their operations, increase efficiency, and provide better services to citizens. Similarly, businesses can benefit from these tools by improving customer experience and driving economic growth.

By focusing on operational efficiency, companies can not only reduce costs but also create a more agile and responsive organization. This approach leads to increased customer satisfaction and loyalty, ultimately driving business success.

Creating a Positive Work Environment

A positive work environment is the bedrock of successful digital transformation. When employees feel valued, supported, and empowered, they are more likely to embrace new technologies and contribute to the organization's growth. Focusing on employee experience is crucial, as it directly impacts overall performance and efficiency. The relationship between employee well-being and organizational success is vital; a strong relationship can enhance performance and drive positive changes, especially during critical times.

Building trust within the organization is essential. This involves transparent communication, recognizing and rewarding contributions, and providing opportunities for professional development. By fostering a culture of innovation and experimentation, companies can encourage employees to think creatively and take calculated risks.

AI technology, such as predictive models and operational data, can play a significant role in understanding and meeting employees' needs. For example, insurers can use AI models to analyze customer data and provide more personalized services, leading to increased customer satisfaction and loyalty. Similarly, AI can help organizations identify areas where employees may need additional support or training, ensuring that they have the resources they need to succeed.

By prioritizing employee well-being and leveraging AI technology, organizations can create a more supportive and productive work environment, ultimately driving business growth and success.

Customer Experience and Digital Transformation

Customer experience is a critical aspect of digital transformation, as it enables businesses to build trust and loyalty with their customers. Digital transformation involves integrating digital technology into all company areas, fundamentally changing how businesses operate and deliver value to customers. Artificial intelligence (AI) technology is essential in improving customer experience by enabling enterprises to provide personalized and efficient services.

Managing directors and business leaders must focus on creating a customer-centric culture, where customer experience is at the forefront of all business decisions. By adopting generative AI and AI technology, businesses can create new opportunities and improve customer experience, leading to increased revenue and competitiveness. For example, AI can help businesses analyze customer data to offer tailored services, enhancing customer satisfaction and loyalty.

In essence, a strong focus on customer experience, supported by advanced AI tools, can transform how businesses interact with their customers, ensuring long-term success in the digital age.

Building a Digital Transformation Framework

A well-structured digital transformation framework is essential for navigating the complexities of this process. This framework should include clear key performance indicators (KPIs) to measure success and a thorough understanding of the company's operating models and business models.

Leveraging generative AI tools can significantly enhance the efficiency and effectiveness of this framework. These tools can help organizations streamline processes, gain valuable insights from data, and improve customer experience. For instance, government agencies can use AI technology to optimize their operations, increase efficiency, and provide better services to citizens.

In Latin America, companies are harnessing the power of digital transformation to create new opportunities and drive economic growth. By adopting a structured approach and utilizing advanced technologies, businesses can build a robust digital transformation framework that supports their long-term goals and enhances their competitive edge. This practice involves ongoing experimentation and adaptation, ensuring that methodologies evolve to meet the changing needs of the organization.

Cultural Change and Digital Transformation

Cultural change is essential for successful digital transformation, as it requires businesses to adapt to new technologies and ways of working. Digital transformation involves a significant shift in culture, from traditional hierarchical structures to more agile and collaborative approaches. This shift is necessary to foster a culture of innovation and experimentation, which is crucial for staying competitive in today's market.

Employee experience and engagement are critical components of cultural change. By creating a supportive and inclusive work environment, businesses can build a workforce that is adaptable and responsive to changing customer needs. New technologies, such as AI and machine learning, can help businesses create a culture of innovation by providing tools that encourage experimentation and creativity.

Regions like Latin America and other countries serve as examples where cultural change and digital transformation are driving economic growth and business success. By embracing cultural change, businesses can improve their overall performance and create new opportunities for growth.

Employee Experience and Engagement

Employee experience and engagement are critical components of business success, as they enable businesses to build a workforce that is motivated and productive. Digital transformation involves a significant shift in employee experience, from traditional office-based work to more flexible and remote working arrangements. This shift requires businesses to invest in new technologies and create a supportive work environment.

Gen AI and AI tools can help businesses improve employee experience by providing personalized and efficient services, such as automated HR processes and virtual assistants. These tools can streamline administrative tasks, allowing employees to focus on more strategic and creative work. Research has shown that two-thirds of businesses consider employee experience to be a key factor in driving business success and are investing in new technologies to improve employee engagement.

Originally published research indicates that businesses that prioritize employee experience and engagement are more likely to achieve success and competitiveness in the market. By focusing on employee well-being and leveraging advanced technologies, businesses can create a more productive and motivated workforce.

The Regulatory Challenge: A Bridge to Build for Government Agencies

Working closely with regulators has taught me that innovation and compliance aren't opposing forces – they're complementary. Traditional theories often fail to account for the complexities of innovation and compliance, overlooking how these elements can work together. Insurers may find themselves subject to new compliance and reporting requirements stemming from Pillar Two tax rules, which could significantly affect their corporate restructuring and operational strategies. Adam Wickens from Relm Insurance shared a valuable perspective from the crypto insurance space, highlighting how his team builds credibility with regulators through careful data collection and transparency. This approach resonates with my experience: successful innovation requires early and consistent engagement with regulatory bodies.

Measuring Success and ROI

Measuring success and return on investment (ROI) is crucial for businesses to evaluate the effectiveness of their digital transformation efforts. Key performance indicators (KPIs) such as customer satisfaction, revenue growth, and cost savings can be used to measure success and ROI. These metrics provide valuable insights into the impact of digital transformation on business performance.

Gen AI and AI models can help businesses measure success and ROI by providing predictive models and operational data to inform decision-making. For example, a speaker shared that a company that used AI to improve customer experience significantly increased revenue and customer satisfaction. This example highlights the importance of using advanced technologies to track progress and achieve business goals.

Worth noting is that measuring success and ROI is an ongoing process. Businesses must continually evaluate and adjust their digital transformation strategies to achieve optimal results. By focusing on key performance indicators and leveraging AI tools, businesses can ensure their digital transformation efforts lead to long-term success.

Getting Started with Digital Transformation

Embarking on a digital transformation journey can seem overwhelming, but it is a necessary step for businesses to stay relevant in today's digital landscape. The first step is to create a positive work environment and build a solid digital transformation framework. This involves investing in new technologies, such as AI and machine learning, and providing employees with the necessary training and resources.

Over the past several years, there have been significant advancements in AI and machine learning, leading to rapid progress and transformation in various industries. Insurance is now going through its own AI-led transformation.

Taking a rapid pace and focusing on improving customer experience are key to driving success. By leveraging AI and machine learning, companies can automate routine tasks, gain deeper insights from data, and deliver more personalized services to their customers. For example, companies in the insurance industry are using digital transformation to enhance customer experience, increase efficiency, and reduce costs.

By taking a proactive approach and focusing on the right areas, businesses can create new growth opportunities and achieve long-term success in the digital age.

Looking Toward 2035: A Collaborative Future

As I look ahead to 2035, I see an insurance landscape that's radically different yet fundamentally familiar. The core promise of insurance – providing security and peace of mind – won't change, but how we deliver on that promise will be transformed.

The global impact of digital transformation and modernization is reshaping the insurance industry worldwide, driving new opportunities and challenges as traditional practices intersect with modern technologies.

I believe the winners in this future won't be those with the biggest tech budgets or the most sophisticated AI. Instead, success will come to those who master the art of collaboration between humans and machines, between incumbents and startups, and between regulators and innovators. Collaboration will play a pivotal role in shaping the future of the insurance industry, ensuring that all stakeholders work together to drive innovation and meet evolving customer needs.

Best Practices for Digital Transformation

To ensure a successful digital transformation, organizations should follow several best practices.

First, focus on creating a positive work environment and building a robust digital transformation framework. This involves prioritizing employee experience and providing the necessary training and resources. Additionally, managing essential but basic operational tasks, often referred to as table stakes, is crucial. These foundational elements are the minimum requirements for effective IT leadership in contemporary organizations.

Second, leverage new technologies, such as gen AI tools and generative AI tools, to improve efficiency and drive business growth. These tools can help organizations automate processes, gain valuable insights from data, and deliver more personalized services to their customers.

Finally, continuously monitor and evaluate digital transformation efforts, making adjustments as needed to ensure success. By following these best practices, organizations can create a successful digital transformation strategy that drives business growth and improves customer experience.

Digital transformation is about adopting new technologies and creating a culture of continuous improvement and innovation. By focusing on employee experience, leveraging advanced technologies, and following best practices, organizations can navigate the complexities of digital transformation and achieve long-term success.

What Can We Do?

To my colleagues across the insurance ecosystem: the time for incremental change has passed. Whether you're leading an established insurer, founding a startup, or investing in the next big thing, I urge you to embrace collaborative innovation. At Alchemy Crew, we've seen firsthand how this approach can accelerate transformation while managing risk.

The role of the managing director is crucial in driving collaborative innovation, especially in addressing the challenges posed by legacy technology and ensuring financial resources are allocated effectively.

The future of insurance isn't something that happens to us – it's something we create together. Let's build it wisely, with purpose, and with a clear focus on the people we serve. After all, in 2035, we shouldn't just be reacting to the future – we should be proud to say we shaped it. We must respond proactively to emerging trends and challenges to ensure we remain ahead.

Remember, as I often tell my partners and clients, insurance innovation isn't about disruption for disruption's sake. It's about making our industry more efficient, more accessible, and ultimately more human. That's the future I'm committed to building. Will you join me?

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