The pace of digital transformation in insurance has accelerated dramatically over the past few years. From personal insurance to small commercial policies and large enterprise risk management, digital tools have altered the way insurers and brokers operate.
But while automation has made processes more efficient, the human touch remains essential, particularly as risks grow more complex and AI plays a bigger role in underwriting and customer interactions.
Stephen Rhee (pictured on the left), global chief digital officer at Gallagher, addressed this paradox at Insurtech Insights Europe in London last week.
“When you look at the three key segments—personalized insurance, small commercial, and large enterprise—you can see the differences in digital adoption,” Rhee said.
Digital self-service has become the norm in personal and small-business insurance, with customers expecting to handle everything seamlessly, from policy renewals to payments. The shift has been driven by consumer demand for frictionless transactions, mirroring the speed and simplicity of the e-commerce experience.
Small business owners that are juggling multiple responsibilities need insurance solutions that integrate effortlessly into their daily operations, according to Rhee. This means they require a digital experience that provides quick access to policies, claims, and payments without adding administrative burdens.
“We often call these business owners the ‘chief everything officer’ because they’re handling HR, finance, and everything in between,” he said. Insurance is often an afterthought, so accessibility is key.
However, as business complexity increases, digital solutions alone may not be enough, Rhee said. Mid-market companies, with their larger footprints and multi-location operations, require a balance between automation and expert guidance. They want efficiency but also need validation from brokers who can confirm whether they have the right coverage.
"They still want some digital, but they want to talk to a broker or an expert who can validate their purchase,” Rhee said. “Am I buying the right amount of limit? Do I have the right market? Do I have the right insurer? Am I getting the proper claim service?"
Finally, large enterprises, traditionally reliant on relationship-based insurance, are experiencing a shift toward digital integration. Rhee said that where the model was once 75% relationship-driven and 25% digital, it is now rapidly moving toward an even split.
"They want to be able to share information with their teams and their brokerages. These large multinationals often don't have just one broker,” Rhee continued. “They have a huge need to disseminate and capture information digitally.”
These companies operate in a world of multinational risk, requiring digital tools to manage vast amounts of data while still depending on expert consultation to navigate complex policy structures.
So, how can brokers and insurers eliminate pain points and smooth out the insurance experience for their clients?
There are five ways to achieve this:
Omni-channel accessibility refers to customers’ ability to interact through multiple channels, with the option for self-service for simple tasks and easy access to expert guidance for complex issues.
At the same time, a personalized digital experience tailored to different market segments (personal, small commercial, enterprise) could include pre-filled forms and streamlined submission processes.
Insurance firms also need to be able to anticipate when a customer might need human interaction. “Companies that get the timing right create seamless experiences, blending digital convenience with personal service where it counts,” Rhee said.
Rhee also addressed the impact of AI. “For brokers, AI is about eliminating pain points. The key question is: What makes the process difficult for clients? The goal is to simplify everything: auto-filling forms, submitting clean applications, and making the entire experience more digital.”
When done right, Rhee said, AI should deliver both a strong quote and the right coverage. Beyond that, AI enhances efficiency, reduces errors, and helps scale operations.
“Every industry benefits from this, but insurers and brokers are laser-focused on integrating AI into their workflows,” he said.
Finally, trust and transparency go a long way in ensuring customer satisfaction at the end of their journey. This means data sharing, giving customers access to analytics and market insights, and boosting their ability to consult with brokers or experts.
