Risk digitisation has emerged as the top strategic technology priority for commercial insurers in North America and the UK, according to a new survey conducted by digital risk processing platform Cytora.
The report highlights an industry-wide focus on leveraging AI and automation to enhance efficiency and streamline workflows.
Cytora’s study surveyed 200 senior leaders from global insurance firms and found that 79% of respondents identified risk digitisation—covering new business, renewals, claims, and MTAs—as the primary area of technological investment over the next two years.
This focus surpassed other technologies such as catastrophe (CAT) models, customer relationship management (CRM) systems, and policy administration platforms.
The survey found that insurers see risk intake digitisation as a driver of business growth and operational efficiency.
Among the benefits cited, 22% of respondents pointed to revenue growth, 19% to increased transaction processing capacity, and 17% to enhanced service for brokers and customers.
However, inefficiencies remain a challenge, with 62% identifying manual data extraction from intake documents as the biggest pain point, followed by disparate risk processing workflows (55%) and lack of unified data flow (52%).
The industry’s commitment to AI and automation is evident in financial investments. More than a quarter (26%) of surveyed executives reported that their organisations had invested at least £500,000 in AI initiatives over the past year, with 11% exceeding £1m.
Looking ahead to 2025, 28% of respondents anticipate spending at least £500,000, while 17% expect to invest more than £1m.
The survey, conducted between 24 February and 5 March 2025, provides insight into decision-making among C-suite executives, directors, and senior managers at leading insurers. Efficiency improvements (59%) ranked as the most significant benefit of AI adoption, ahead of enhanced customer and broker satisfaction (44%), more connected systems and data integration (41%), and improved risk assessment capabilities (35%).
Beyond technology adoption, risk digitisation is also reshaping the insurance workforce. Increased productivity was the most frequently cited impact (67%), followed by enhanced talent retention and attraction (65%), opportunities for upskilling (60%), and improved employee morale (57%).
Cytora CEO Richard Hartley said, “The message from the survey is clear: risk digitisation is a top board level priority for the commercial insurance industry. Insurers that effectively harness and scale AI to digitise risk workflows will have an enduring and growing advantage in the years ahead. Risk digitisation unlocks the path to a zero marginal cost operating model, progressively decoupling premium growth from expense growth and reinforcing decision-advantage.”
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