Which 3 things make digital transformation the biggest concern for insurers, even more than the sluggish economy & low-interest rates?

Paper assets – Over decades, insurers accumulated paper assets that could stretch for miles. Most of those are confidential & must be archived for regulatory reasons. They require special storage & authorized access. Thus, managing these paper assets is cost-intensive & time-consuming which makes operations inefficient. At the same time, the digitization of paper assets of that scale is nearly impossible.

Regulations – Insurers run in a highly regulated environment. There are stringent guardrails in trying new ideas, & restrictions in the use of PII, PCI, & PHI data. These limit capabilities in a lab environment which slows down innovations.

Variability in data – Automation levers like AI/ML models drift easily in the production environment due to disparity in the source, quality & context of data between prod & research regions. The source of data used for training these models during research is normally different from the data in production where the model runs. Also, mergers & acquisitions impact the quality & context of production data over time. This impacts the models’ performances.

Thoughts in favor or against?