## Digital Disruption in Insurance
According to Levvel Research, traditional insurers have been [slower to adopt modern technologies](https://www.levvel.io/resource-library/access/2020-insurance-technology-executive-report "2020 Insurance Modernization Executive Report"), even in the wake of the COVID-19 pandemic. Slow adoption has made it difficult for many insurers to stay competitive and meet the evolving needs of the insured.

Levvel’s recent [Insurance Technology Executive Report](https://www.levvel.io/resource-library/access/2020-insurance-technology-executive-report "2020 Insurance Modernization Executive Report") found that insurers want to innovate but are being held back by concerns such as security, tech debt, and reliance on legacy technologies. Additionally, the insurtech market is biting at the heels of traditional insurers, creating more urgency when it comes to adopting modern tech. By better understanding these areas of improvement, insurance CIOs can drive traditional companies—and traditional thinking—toward the [digital future of insurance](https://www.levvel.io/resource-library/video-series-the-future-of-insurance "Video Series: The Future of Insurance").

## Top Tech Challenges in Insurance
The need for all types of [insurers to modernize is critical](https://www.levvel.io/resource-library/how-are-legacy-systems-holding-back-the-insurance-industry "How are Legacy Systems Holding Back the Insurance Industry Blog"). However, many insurers are held back by technology challenges, which are preventing them from jumping head-first into the digital-first era. Today’s insurers face challenges that include:

- Security
- Personalization
- Automation
- Cloud/APIs

![Insurance-CIO-Blog-Image-2](//images.contentful.com/zqj370hybozc/704cIi9zz2fAd1iTQTYZp3/0de14d8fa03b5fea9c8c748696323cd7/Insurance-CIO-Blog-Image-2.png)

__Caption:__ Insurers top IT challenge is security. The amount of data that insurers collect can make them targets to hackers. Rightfully, personal and sensitive data protection is critical to the success of global insurers. 

But with the insurance industry heavily reliant on IT systems to support core applications, it may come as no surprise that “maintaining legacy systems” follows closely behind at 40% in __Figure 1__. But what does success look like in the digital world of insurance, and how is it being achieved?

## The Evolution of Insurtech 
Until recently, there wasn’t an urgent need for insurers to innovate or implement new technologies. Many consumers find insurance to be a necessity, and there weren’t many disruptors in the space. But with the emergence of the insurtech market, the industry has seen a drastic shift toward digitization. 

Now with fierce competition, many insurers have found it difficult to stay competitive and cutting edge. Traditional insurers have struggled to keep pace with the insurtech firms that are offering cheaper services, unique products, and fast-paced business models. Perhaps for the first time, modern technology is impacting every aspect of the insurance value chain.

With new technology comes new business models focused on better security, personalization, automation, and Cloud/APIs—solving many of the top tech challenges that insurers are currently facing. It’s important for insurance CIOs to examine how investing in technology can help them [meet customer demand](https://www.levvel.io/resource-library/watch/how-insurers-can-meet-the-demand-for-digital-self-service "How Insurers Can Meet the Demand for Digital Self-Service Webinar"), as well as stay competitive in this new digital age.

## Insurance Strategy for the Digital-First Era
The end goal is for [insurers to better understand and meet customer expectations](https://www.levvel.io/resource-library/access/2021-insurance-consumer-report-a-guide-to-growing-digital-demands-for-insurance-providers "Levvel's 2021 Insurance Consumer Report") that have been continually transformed by modern technology. The new world of quick delivery, tailored services, and a “one-stop-shop” approach are driving innovation in this space. Luckily, many insurers are starting to adopt modern capabilities that help meet high-level, strategic initiatives within their businesses.

![Insurance-CIO-Blog-Image-1](//images.contentful.com/zqj370hybozc/4Zq6UCSlpNNTFTTc2J8LNo/0962ebe6a81321756ec4292e4a4d4d09/Insurance-CIO-Blog-Image-1.png)

__Caption:__ Many insurance CIOs are turning their attention toward modern technology to more efficiently meet customer needs.

While the concept of product or digital teams may be new to most insurers, insurance CIOs should examine how product and IT teams can work together to create the digital experience many of their customers desire.

## Embracing the Digital-First Era
What has been traditionally labeled as IT has changed, and insurance CIOs should designate who takes the lead on these initiatives, whether it be IT, digital, or innovation teams. 

As the insurance industry—and its challenges—continue to evolve, it’s important for CIOs to take the leap toward modernization in order to compete in the digital landscape.

Insurers can better tackle the biggest tech challenges in insurance today by embracing change, especially when it comes to [evolving customer expectations](https://www.levvel.io/resource-library/watch/how-p-and-c-customer-expectations-are-driving-product-innovation-insights-from-1000-insurance-consumers-surveyed "How P&C Customer Expectations are Driving Product Innovation Webinar"). With insurtechs at the forefront of the digital era, insurers can keep pace by shifting their focus to next-generation technologies.


Driving Next-Gen Insurance: How CIOs Can Lead in the Digital-First Era

Hear from Levvel experts and Rob Galbraith, Bestselling Author at Insurance Nerds and former Director of Underwriting Research at USAA, on how to best prepare and support a technology approach that meets evolving insured’s expectations.

The Insurance CIO’s Guide to Leading in the Digital-First Era

This article explores the insurance industry’s top tech challenges, the rise of insurtech, and how insurance CIOs can prepare for the next-gen journey.

Driving Next-Gen Insurance: How CIOs Can Lead in the Digital-First Era

The Insurance CIO’s Guide to Leading in the Digital-First Era

Driving Next-Gen Insurance: How CIOs Can Lead in the Digital-First Era

Read the Blog