Top trends and priorities focus on digital acceleration and providing a seamless client digital experience

We met with 54 life and pension insurance executives to understand their top trends and priorities and how they plan to navigate these uncertain times. Executives cite managing costs to improve combined operating ratios as their most impactful industry trend and providing a differentiated, seamless client digital experience as their top business priority. In terms of macro trends, digital acceleration is a key driver of both business and IT priorities. Discover executives’ top trends, priorities and more.

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Key findings

1. IT modernization to rise:
40% have modernized >20% of their applications portfolio; 56% plan to in 2 years.

2. Use of managed services to grow:
43% use substantial or fully managed services for IT apps now; 54% will in 3 years.

3. AI tops innovation plans:
39% AI / machine learning is the #1 innovation area in 3 years; customer experience is #2.

4. Climate action rises in impact:
51% cite high impacts of the fight against climate change, up 19pp vs 2022.

5. Extended digital strategies needed:
97% have digital strategies in place, but only 22% include their ecosystems.

Adult and child watching a tablet together

What digital leaders do differently

Life & Pension Insurance clients are ahead of many industries in producing results from their digital strategies, with 45% of executives citing such results in 2023, up 5% from 2022. When comparing insights from the 45% producing results (digital leaders) to those building or launching digital strategies (digital aspirants), common attributes emerge. Digital leaders in L&P Insurance excel in business and IT alignment, business model agility, and advancing cybersecurity and data privacy.

Closely align business and IT operations to support strategy execution

Closely align business and IT operations to support strategy execution

Digital leaders

77%

Digital aspirants

57%
Have highly agile business models

Have highly
agile business
models

Digital leaders

41%

Digital aspirants

29%
Maintain and ensure a secure environment

Maintain and
ensure a
secure environment

Digital leaders

63%

Digital aspirants

31%

5 recommendations for advancing your top priorities across industries

1

Align business and IT operations
for delivering digital and back-office system modernization.
2

Address legacy policy and claims systems
to enable a seamless digital experience.
3

Responsibly leverage AI
in underwriting, claims and servicing to retain and attract talent.
4

Streamline compliance, regulation and ESG reporting
using automation and data.
5

Leverage partner models as strategic enablers
to navigate legacy and resource challenges.

 

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At CGI, we help insurers deliver a seamless customer experience through core platform modernization and digital transformation.

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