UK insurers widely recognise the importance of digital platforms, yet many remain dissatisfied with their current systems’ ability to meet business requirements, according to new research from Covernet.
The study of insurers and managing general agents (MGAs) found that 88% rated digital adoption as important or very important to their operations, FF News reported.
However, only 61% described their existing platforms as good at delivering functional requirements. This disconnect reveals an industry caught between digital ambition and operational execution.
The research highlights that competitive advantage is the leading driver of transformation for 39% of respondents, outweighing cost savings (15%) and customer demand (21%).
Yet, despite the strategic intent, 39% of insurers and MGAs expressed neutral or poor satisfaction with their digital platforms.
Selecting and implementing platforms remains a complex challenge. Insurers are faced with choosing systems that impact underwriting, pricing, claims, distribution and finance—decisions that carry long-term consequences.
The report notes that too often, firms fail to allocate sufficient resources to discovery, proof-of-concepts and change management, as the responsibility is typically added to business-as-usual workloads. This increases the likelihood of suboptimal selections and compromises.
Covernet chief commercial officer Jim Campbell said, “The industry is caught between digital aspiration and operational reality. Insurers understand that technology is critical for competitive advantage, but too many are settling for platforms that don’t fully deliver on their business requirements. This disconnect suggests many firms are rushing into digital transformation without properly evaluating whether their chosen solutions can actually support their strategic objectives.
“The next phase of digital transformation is about ensuring the platforms insurers choose can genuinely transform their operations rather than simply digitising existing inefficiencies. Choosing a core platform is a difficult call and it deserves dedicated attention. If teams don’t fully invest in the process – and for most this isn’t a full-time role – it’s easy to miss what really matters to underwriting performance and customer experience.”
The findings underline the urgency of optimising existing systems, as 97% of insurers now use digital platforms to some extent.
With adoption nearly universal, the challenge for the sector is to ensure that technology investments deliver measurable business improvements rather than simply digitising outdated processes.
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