Fear, literacy gaps, and costs slow insurers' digital shift

Insurers cite job fears, digital illiteracy, and high costs as barriers.

Insurers' digital transformation efforts face critical challenges due to fear of job replacement, lack of digital literacy, and significant investment requirements, according to Andrew Samaratunge, Chief Financial Officer at Generali Thailand.

“It's not so much resistance...it's more inertia in the industry,” Samaratunge said, “There's more focus on shorter term performance measures, specifically for financial institutions, we have a long centuries old history of bringing financial security. [...] So as a result, we tend to err on the side of conservatism and risk averseness.”

Digital initiatives aimed at customer acquisition and engagement often face hurdles because they apply narrowly to traditional insurance models. “Insurance still remains largely intermediate business given the low customer awareness of the insurance needs,” he explained, adding that proprietary websites and mobile apps alone often fail to scale.

Samaratunge suggested expanding digital tools beyond current use cases. For instance, proprietary websites could serve as white-label sales portals for all distribution channels, while mobile apps could incorporate lifestyle features such as loyalty programs with discounts on retail, dining, travel, and health.

“Leaders need to drive digital transformation top down, and then to enable digital transformation bottom up,” Samaratunge emphasised. A clear vision, strategic commitment, and involving all executives in digital efforts are essential. Leaders must also foster a culture of experimentation, learning from both successes and failures.

Bottom-up initiatives include embedding digital goals in staff development, recruitment, and training, and appointing digital transformation champions. Creating an environment that encourages agility, iterative processes, and collaboration between digital and insurance experts is equally important.

“The finance sector is slow relative to other sectors...insurance tends to lag behind banking and finance,” he noted, urging the industry to accelerate digital transformation to meet evolving customer demands and competitive pressures.