Transforming Insurance: Risk Digitization Emerges as a Top Technology Priority

In the ever-evolving landscape of commercial insurance, risk digitisation has emerged as the leading strategic technology priority for insurers in North America and the UK. A recent survey by Cytora, a digital risk processing platform, has revealed key insights into how the industry is prioritizing advancements in technology to enhance operational efficiency.

Survey Insights on Risk Digitisation

The survey, which included responses from 200 senior leaders across global insurance firms, found that an impressive 79% of participants identified risk digitisation as the primary area for technological investment over the next two years. This focus significantly outpaced investments in other technologies such as:

• Catastrophe (CAT) models
• Customer Relationship Management (CRM) systems
• Policy administration platforms

Benefits of Risk Digitisation

Insurers recognize that digitising risk intake processes plays a crucial role in driving both business growth and operational efficiency. Key benefits highlighted by the survey include:

• 22% of respondents cited revenue growth as a key benefit.
• 19% noted increased transaction processing capacity.
• 17% reported enhanced service for brokers and customers.

Challenges in Implementation

Despite the promising outlook, insurers face several challenges. The survey identified the following pain points:

• 62% struggle with manual data extraction from intake documents.
• 55% face issues with disparate risk processing workflows.
• 52% encounter a lack of unified data flow.

Investment Trends in AI and Automation

The commitment to integrating AI and automation is evident, with more than a quarter of executives (26%) reporting investments of at least £500,000 in AI initiatives over the past year. Moreover, 11% indicated that their organizations had exceeded £1 million in investments. Looking forward to 2025, expectations remain high, with:

• 28% anticipating spending at least £500,000.
• 17% expecting to invest over £1 million.

The Future of the Insurance Workforce

Risk digitisation is not only transforming technology but also reshaping the insurance workforce. The most frequently cited impacts include:

• 67% indicated increased productivity.
• 65% noted enhanced talent retention and attraction.
• 60% highlighted opportunities for upskilling.
• 57% mentioned improved employee morale.

Expert Insight

Cytora CEO Richard Hartley emphasized the importance of these findings, stating, “The message from the survey is clear: risk digitisation is a top board-level priority for the commercial insurance industry. Insurers that effectively harness and scale AI to digitise risk workflows will have an enduring and growing advantage in the years ahead.”

For more information on AI in insurance and how to navigate these changes, check our detailed articles on AI in Insurance and Insurance Technology Trends.