Insurers and MGAs view lack of digitisation as a threat to competitiveness

Some insurers and MGAs are not implementing digital transformation strategies despite them being seen as key to having a competitive edge.

That was according to a new survey released by insurance technology solutions provider RDT, which said that firms are “leaving them exposed to inefficiencies and competitive threats”.

The data, which was published today (19 March 2025), showed that while 79% of insurance professionals consider digital transformation either “important” or “extremely important” for staying competitive, only 13% have fully digitised their operations.

And over a third (34%) have no current plans to do so, figures showed.

‘Ongoing challenges’

The survey polled 30 technology professionals from insurers and MGAs between 16 October and 8 November 2024.

RDT suggested that the figures showed “ongoing challenges, including legacy systems, budget constraints and uncertainty around the best path forward” when it comes to digital transformation.

It also felt that “digital transformation efforts must be targeted, cost-effective and capable of integrating with existing infrastructure to deliver real value”.

Joe O’Connor, deputy chief executive at RDT, said: “Insurers know they need to transform, but many are held back by the complexity of integrating new technology with legacy systems. Our research confirms that while the intention is there, execution remains a challenge.

”That’s where RDT comes in – we specialise in making digital transformation achievable.”