Mark Bennett, chief growth officer at ACORD Solutions Group, says that in the insurance industry, culture is often the biggest barrier to digital change—not technology itself. While old systems and technical debt do create challenges, it’s the resistance inside companies that really slows progress.
Many insurers still use systems that are 20 to 30 years old. Updating these can reveal big gaps in how different systems work together. While platforms like Guidewire and Duck Creek offer more flexibility, many insurers remain stuck with outdated setups.
Bennett points out that the main hurdle isn’t the software but the mindset. For example, agents and brokers in property and casualty insurance are used to entering the same data multiple times by hand. Switching to automated systems changes how they work daily. It’s a big shift that can be tough for employees to accept.
Artificial intelligence is becoming a key part of insurance. Bennett calls it one of the biggest changes for companies today. However, AI is not a fix-all. Instead of replacing entire core systems, insurers can now add AI and outside data on top of what they already have. This helps improve decisions and suggest next steps without a full system overhaul.
But rushing into AI without changing workflows first is risky. Bennett warns that some specialty carriers jumped in with AI strategies too quickly, without rethinking how work should flow. This only moves problems around instead of solving them. He encourages firms to study where AI fails as carefully as where it succeeds.
Interestingly, smaller insurance agencies are often moving faster than big firms. They usually buy off-the-shelf systems from vendors like Applied Systems or Vertafore. These vendors update their software regularly, so smaller agencies get new AI features automatically. Plus, smaller companies face less bureaucracy and can try new things quickly.
Bennett points to Howden, a specialty reinsurance company, as an example of a smaller player speeding ahead by being able to pivot fast.
Despite the push for innovation, Bennett stresses the need for caution. Insurance is a highly regulated market. It’s vital that changes don’t cause disruptions in compliance, operations, or important services. Using AI must improve efficiency without creating new problems.
In short, Bennett believes culture and mindset are the biggest challenges in insurance’s digital journey. Technology, including AI, can help—but only if companies rethink how they work from the inside out.