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      As the insurance market evolves and new challenges emerge, insurance leaders and decision-makers are looking to improve their organisation’s agility, flexibility and cost base. The problem is that many insurance organisations have historically struggled to achieve their transformation and cost objectives, with only 25% of transformation initiatives considered highly successful. This report aims to explain why and, more importantly, how the leading insurers are successfully delivering on their goals.

      Based on a recent survey of more than 250 insurance leaders globally and supported by insights from KPMG’s global network of insurance professionals and industry leaders from Empire Life and Covéa Insurance, this report explores the objectives, opportunities and complexities influencing insurance transformation. And it digs into the success factors that are driving the most advanced insurers as they strive for operational and cost transformation.

      Insurance transformation: The new agenda

      Explore how leading insurance organisations are approaching operational and cost transformation initiatives

      Download the report today

      Three key findings

      75% of respondents expect to reduce costs by at least 10% by 2030

      Anticipated cost savings are significant for insurance organisations.

      25% have been successful in achieving cost reduction goals

      Yet successful transformation has been a challenge.

      Only 41% considering themselves well-positioned to grow revenues

      Not all insurance organisations think they’re ready.

      On the surface, the insurance industry appears vibrant with organisations adopting new technologies and launching performance-enhancing programs. But beneath this momentum lies a critical question: What sets the true leaders apart? How are high-performing insurance organisations achieving operational efficiency, cutting costs, and building sustainable performance in a rapidly evolving landscape?

      Perhaps not surprisingly, the largest proportion of transformation budgets are earmarked for technology. Nearly eight in ten insurers report that they have either implemented or are about to implement new digital procurement platforms to improve their supply chain management. And respondents say technology is where they plan to focus around a quarter of their OpEx spend. The remainder would be split equally between process re-engineering (20%) portfolio and infrastructure rationalisation (19%), skills and capabilities (19%) and regulatory spend (18%).

      Data from this recent survey suggests that - for many insurance organisations - the approach to transformation is leading to siloed initiatives and outcomes. Less than four in ten respondents say that their transformation and cost efforts are being executed through a centralised model where initiatives are assessed, planned and prioritised at the enterprise level. And one in five say they employ a ‘hub-and-spoke’ approach where strategies are prioritised centrally but executed at a geographic or functional level. This fragmented approach can lead to inefficiencies, duplicated efforts, and missed opportunities, ultimately limiting the full potential of transformation programs.

      So, what are the most successful insurance organisations doing differently to achieve transformative outcomes?

      Our research points to four key differentiators:

      • Clearly defined cost objectives

        Insurers demonstrating successful transformation initiatives set specific, measurable cost goals that align with their broader business strategy.

      • Robust, dedicated budgets

        Business leaders allocate sufficient resources to ensure transformation initiatives are well-funded and sustainable.

      • Alignment between cost and transformation goals

        These organisations ensure that cost-saving efforts support-not hinder-their innovation and modernisation agendas.

      • Leadership accountability

        Executive teams are directly responsible for delivering results, fostering a culture of ownership and performance.

      India’s insurance sector is at a pivotal moment. With India’s insurance industry poised for rapid expansion-driven by digital adoption, regulatory reforms, and rising consumer awareness-this report offers a strategic blueprint for insurers ready to lead transformation and shape the future of the industry.
      Kailash Mittal

      Partner FRM, Head – Insurance & Head – Actuarial

      KPMG in India

      Kailash Mittal

      Five key takeaways

      Transforming the insurance organisation and cost base is not easy. In fact, very few industry leaders say their past efforts have fully achieved their transformation and cost goals. The majority of our respondents say that they struggle with the complexity of it all - they face significant change portfolios but lack focus on prioritisation and coordination. So here are five key takeaways to help insurance organisations achieve measurable and sustainable transformation outcomes.

      • Set a clear vision for change

        Define a clear vision that aligns your cost and transformation goals with your overall business strategy.

      • Make leadership accountable and achieve visibility

        Leadership should be onboard, aligned and accountable for transformation goals.

      • Improve and leverage your data to achieve your goals

        Unstructured or poor-quality data often prevents insurance organisations from identifying inefficiencies and making informed decisions.

      • Consider your key processes before jumping into technology solutions

        Don’t rush to implement technology without first evaluating your core processes - in some cases, outsourcing or manage services may offer greater efficiency.

      • Align your culture to your transformation objectives

        Without the right cultural foundation, even the most well-designed strategies and technologies can fail to deliver their intended impact.

      How can KPMG in India help

      At KPMG we believe transformation starts with people. Our global network of experienced insurance professionals provides clients with deep industry knowledge, actionable insights and implementation expertise, helping to realise the full potential of their people and technology, and working together to achieve successful transformation. Because when people and technology are in harmony great things happen.

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      Key Contact

      Kailash Mittal
      Kailash Mittal

      Partner FRM, Head – Insurance & Head – Actuarial

      KPMG in India

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