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Overview of ACORD's 2025 Study on Insurance Digital Maturity

In a recent release by ACORD, the globally recognized standards-setting organization in the insurance sector, the findings of the 2025 Insurance Digital Maturity Study have generated considerable discussion. This study scrutinizes 210 of the largest insurance companies worldwide, spanning major sectors such as property and casualty, life, and reinsurance. The stark revelation is that merely 25% of these organizations have undergone significant digital transformation, while over 10% remain significantly behind, failing to leverage digital technologies in their operations. More than half of the insurers are still in the early stages of understanding how digitalization could enhance their business models.

Key Findings

The study highlights several critical areas regarding digital maturity among insurers. ACORD's evaluation utilized the latest data to determine each insurer’s digital maturity level compared to its industry peers. It also assessed the correlation between the level of digital integration and the value created within the organization. One of the most concerning findings is that a substantial number of insurers are lagging, potentially exposing themselves to operational inefficiencies and a diminishing competitive edge in the market.

Notably, the report introduces an important addendum focusing on AI and digital maturity. This section examines how artificial intelligence can streamline processes within insurance enterprises and aid those with lower digital maturity to overcome barriers to growth. Implementing robust AI systems could significantly lower operational costs, potentially saving the property and casualty insurance sector approximately $480 billion annually. In life insurance, the savings could reach around $300 billion each year.

The Role of AI

Bill Pieroni, the CEO of ACORD, emphasized the crucial role of AI in closing the performance gap between digital pioneers and those lagging behind. He stated that the gap between digitally advanced competitors and laggards has been ever-increasing, with AI integration playing a key role in exacerbating this differentiation. As such, insurance companies must craft clear strategies that allocate resources toward both AI and a broad spectrum of digital capabilities to thrive in a competitive landscape moving forward.

The data from ACORD indicates that enhanced digital maturity leads to improved performance metrics and value generation. Organizations that excel in digital capabilities routinely outperform the industry average. Higher digital maturity also correlates with widespread adoption of ACORD Data Standards, aiding operational efficiency across the entire value chain.

Strategic Implications

The comprehensive nature of the 2025 ACORD Insurance Digital Maturity Study provides a roadmap for insurers to identify shortcomings in digital strategy and implementation. The findings are pivotal in helping companies target specific improvements and strategically enhance their digital capabilities. Access to the full white paper is available free of charge to ACORD members, allowing insurers to delve deeper into the execution imperatives necessary for digital transformation.

This research constitutes not just an analysis of current conditions but serves as a call to action for an industry at a crossroads. Insurers must recognize the urgency to adapt to a rapidly evolving digital landscape or risk obsolescence. For further details and access to the full report, ACORD invites interested parties to visit their official website at www.acord.org/research.

ACORD continues to be a key player in the insurance industry, driving the establishment of effective data exchange and workflow efficiencies through their standards. With offices in both New York and London, they engage thousands of professionals across the globe, fostering collaboration for future advancements in the insurance sector.