Digital transformation has become a buzzword in the insurance industry, but what does it really mean? Ema Roloff, Director of North American Property and Casualty Sales, says digital transformation is fundamentally about “making your people more efficient and improving your processes through technology.” This people-first approach represents a critical shift from how many organizations typically approach transformation initiatives, where technology often takes center stage while the human element gets sidelined.

With its complex processes and regulatory requirements, the insurance industry presents unique challenges for digital transformation. Many carriers have historically used complexity as an excuse to avoid asking hard questions about why processes exist in their current form. As Ema pointed out during her conversation with Greg Hamlin on the Adjusted podcast, it’s common to hear explanations that begin with “25 years ago…” when questioning current practices. This reluctance to challenge the status quo can significantly impede meaningful transformation.

While many carriers have made substantial investments in customer-facing digital experiences due to the “Amazon effect,” Ema suggests that the most significant opportunities now lie in optimizing backend systems and processes. By enhancing employee experiences through streamlined workflows and integrated systems, carriers can ultimately deliver better customer experiences. This approach recognizes that inefficient internal processes inevitably impact customer satisfaction, regardless of how polished the front-end experience might be.

One of the most significant challenges in digital transformation is the lack of a clear vision at the leadership level. Organizations risk creating siloed innovations that fail to integrate effectively without a specific direction that helps teams prioritize initiatives and align their efforts. When departments interpret vague digital mandates in their own ways, the result is often a fragmented technology landscape where systems don’t communicate with each other, and “shadow IT” proliferates.

Change management emerges as another critical factor in successful transformation. Ema emphasizes that every team member needs to understand “what’s in it for them” if they’re going to support an initiative. This requires connecting the organizational vision to individual benefits, whether that means making jobs easier, increasing productivity, or other personal advantages. Without this connection, employees are likely to resist change, especially if it feels threatening or mandated without their input.

When selecting technology partners, Ema advises carriers to be skeptical of vendors who claim implementation will be effortless. Transformation is inherently challenging, and potential partners should be willing to discuss possible pitfalls and contingency plans. The relationship between carriers and technology providers should resemble a marriage—requiring open communication about how conflicts will be addressed and problems solved before committing to the partnership.

The debate between single-platform solutions versus best-of-breed approaches presents tradeoffs that each carrier must evaluate based on their specific circumstances. While integrated platforms offer simplicity and reduced maintenance overhead, they rarely excel in every capability area. Conversely, specialized solutions may provide superior functionality in specific domains but create integration challenges and increase the complexity of ongoing maintenance. Typically, larger carriers with more resources tend to pursue best-of-breed approaches, while mid-tier and smaller organizations often prefer the manageability of integrated platforms.

Building digital literacy throughout the organization is essential for setting realistic expectations and fostering innovation. This doesn’t mean turning everyone into technical experts but rather ensuring a basic understanding of technological capabilities and limitations. When leaders and employees possess this foundational knowledge, they can ask better questions, set appropriate timelines and budgets, and envision new possibilities for improvement.

For successful user adoption, Ema recommends identifying influential team members with institutional knowledge and involving them in the solution design process. These individuals—often initially the most resistant to change—can become powerful advocates when they feel their expertise has been valued and incorporated. Their endorsement carries significant weight with colleagues and can dramatically accelerate organizational adoption.

Digital transformation in insurance isn’t merely about implementing new technologies—it’s about reimagining how people work, processes function, and systems integrate to deliver better employee and customer outcomes. For more information on Digital Transformation, contact Ema Roloff at [email protected], and check out her YouTube Series, “Leading Change with Ema Roloff.”