Balancing innovation and reality
The path forward lies in thoughtful transformation, built with the people who understand the business best
Reinsurance is a business built on tradition, trust and highly specialised expertise, but as we move through 2025, the operational landscape is under increasing pressure to evolve
We have often been told that artificial intelligence (AI), machine learning, predictive analytics and blockchain will transform the traditional insurance and reinsurance business models. The narrative has been that the re/insurance sector must adapt to stay relevant.
There is no doubt technology has and will continue to make the re/insurance industry more effective and efficient. From automating transactions and policy and administration systems, technology has spread to and improved every part of the insurance business. Digital transformation is no longer a distant aspiration, but rather a daily topic of conversation, from strategic board discussions, to steering groups and casual chats by the coffee machine.
The reality is, on the operations floor, the story is often more complex. Many teams are caught in a familiar cycle of juggling legacy systems, managing workarounds and keeping things running through persistence. Everyone agrees things could be better. The question is: do we take the leap and modernise, or hold off because at least things still (mostly) work?
We have heard this dilemma from many organisations: “Our platform isn’t perfect, but it gets the job done.” For the business, the goal is not chasing the latest tech trend. It is about ensuring the business runs better tomorrow than it does today without breaking what still holds it together.
It works… kind of
Most re/insurance systems do their job but often in spite of themselves. Many rely on invisible scaffolding: spreadsheets, handwritten notes, or that one colleague who knows how the system “really” works.
It is best described using the French expression "usine à gaz" – an overly complex, convoluted set-up with so many moving parts that no one fully understands how it all fits together. It is like an old building. We know where not to step, because changing one thing could break three others.
This is not failure. It has been survival through ingenuity, but it becomes a real challenge when change is needed because nobody wants to be the person who unplugs the first wire. Even when the directive is, “Let’s modernise”, teams on the front lines are left asking: “How and where do we even start?”
From a business standpoint, there is no shortage of buzzwords in the tech world – AI, big data, APIs, and so on. However, the real question buyers are asking is not only about what is possible, but what is usable.
The real-world pain points are well known – contracts in PDFs, terms in emails, data in Excel, manual rekeying of the same information across three systems, entering one contract as five different ones as the solution cannot comprehend its intricacies, to name just a few. Also, there are systems of record that do not match, have no version control, and a growing number of “temporary” workarounds that have become permanent.
Beyond that, issues with under-utilised data, siloed operations, cumbersome interfaces, and legacy systems that are cannot scale still plague the market – as does batch processing when real-time is needed, and slow response times in fast-moving risk environments.
Checklist of features
As technology providers, we must move beyond a checklist of features.
Buyers are looking for several things. Usability is key – they want tools that work without weeks of training. They need real-time integration with no more multiple versions of the truth. Companies need modularity, which will allow gradual change. Natural language interfaces that are intuitive, with human-friendly interaction are needed, as well as interoperability – ie, systems that talk to each other. Finally, they need digital simplicity – something that is clean with clear workflows that reduce complexity.
If you still need three days of training just to figure out how to submit a risk, something in the solution is not right.
Today, reinsurers want technology partners, not just solution vendors. That means supporting adoption, navigating organizational complexity, and staying engaged well beyond go-live. It also means understanding the realities of change management.
Technology versus complexity
One thing we always remind ourselves: reinsurance is a people business. Every placement is different. Contracts evolve. Exceptions are the norm.
The goal of technology is not to eliminate that complexity but to make it manageable; to reduce the manual burden and increase clarity; and to allow the business to focus on what matters.
When systems are designed to support not over-ride expertise, the teams can move faster and more confidently. The result is less time spent chasing missing data or understanding inconsistent records, and more time focused on risk, managing relationships and delivering insights that matter.
Reinsurance does not need disruption for disruption’s sake, but can it afford to stand still? The path forward lies in thoughtful transformation, built with the people who understand the business best.
The future is not just about tools. It is about offering solutions that work in real-world conditions, with all the complexity, unpredictability, and nuance that defines reinsurance.
Veronique Gob is chief digital officer at inari
