The conditions for digital transformation are actually ideal. With the continuous improvement in the digitization of society and the ubiquity of technology (including continuous Internet access via mobile devices, social media and cloud computing), the foundation for digital transformation has already been laid. However, there appear to be barriers to the development of digital capabilities, as there is generally no single, industry-focused solution, which hinders full digital transformation. But the longer the entire transformation is postponed, the greater the pressure on competitors to act and the higher the implementation costs.
Insurers have therefore already largely recognized the opportunities and necessities of digitization. According to GDV (2021), more and more insurers are investing in digitization. In 2019, spending on IT increased by over 15 percent compared to the previous year. Some are working closely with insurtechs, while others are establishing their own digital subsidiaries. Nevertheless, there is still a lot to do, because digitization does not work from one day to the next - especially in insurance companies, where there are many old-fashioned and slow processes. According to GDV, the highest priorities are data security and data protection, identity management, and the integration of alternative payment processes such as Big Data, robotics, and artificial intelligence.
