Insurers risk falling behind amidst consumer demands: Camunda

Workforce shortages are also a looming challenge for the industry.

The insurance industry faces growing challenges as rising consumer expectations and workforce shortages pressure companies to innovate or risk falling behind, according to a Camunda report.

The report quotes Accenture stating that insurers that address tech debt, prioritise innovation, and develop flexible digital infrastructures report 60% higher revenue growth and 40% higher profitability. 

However, many insurers struggle with outdated technology, fragmented processes, and a talent gap, which hinder their ability to scale innovation effectively, Camunda’s “Driving Innovation: Why Process Orchestration is Key to Scaling AI  in the Insurance Industry” report stated.

AI presents significant opportunities to modernise insurance operations by transforming processes into intelligent, personalised systems. 

However, barriers to widespread AI adoption remain, including unclear business impacts, regulatory uncertainty, and resource constraints. 

IT teams often hesitate to approve AI initiatives due to concerns about feasibility and compliance. 

A growing talent shortage also further complicates AI implementation. With 50% of the insurance workforce expected to retire within the next 15 years, insurers are grappling with both operational and technical skill gaps.