The influence of technology within insurance boardrooms is now more pronounced than at any point in the sector’s history, reshaping how senior executives approach strategy, risk and long-term competitiveness. Where digital systems once played a largely supportive role, they are now central to executive decision-making and governance structures, altering the very nature of boardroom discussions.
Will Ross, chief executive and co-founder of Federato, highlighted how priorities across the industry have shifted significantly. Cybersecurity threats, social inflation and climate-related disasters are no longer peripheral concerns but core agenda items for senior leadership teams. These issues, he noted, are now routinely examined at the highest level, reflecting the growing complexity of risks facing insurers.
Ross pointed out that many insurance firms continue to operate on legacy infrastructure, relying heavily on older internal software systems and server-based architectures. This reliance, particularly evident in parts of the Asia-Pacific region, is increasingly viewed as a structural constraint on progress. Such systems, while once adequate, are struggling to keep pace with the speed and scale of modern data-driven operations.
He argued that while artificial intelligence dominates much of the industry conversation, the more pressing challenge lies in addressing foundational weaknesses in existing technology stacks. Without resolving these underlying issues, he suggested, the benefits of newer tools may remain limited or unevenly distributed across organisations.
Despite the sector’s reputation for stability, Ross challenged the assumption that consistency necessarily reflects operational efficiency. He observed that while insurers once tended to perform at relatively similar levels, clearer divergences are now emerging. Some companies are accelerating ahead, leveraging data more effectively, while others are falling behind due to slower technological adaptation.
A key factor behind this widening gap, he explained, is the ability to interpret and deploy data effectively. In today’s environment, competitive advantage increasingly depends on how well organisations can extract insight from information flows, a capability now closely tied to artificial intelligence and advanced analytics.
However, Ross cautioned against viewing automation as a universal remedy. He warned that relying solely on automated systems could introduce new vulnerabilities, particularly in a sector where decisions carry significant financial and societal consequences. In insurance, the scale of potential error in risk modelling or claims assessment makes unchecked automation a particular concern.
He also drew attention to the relatively lower proportion of labour costs within insurance compared with software-driven industries, suggesting that workforce replacement should not be the primary objective of technological adoption. Instead, he stressed the importance of identifying inefficiencies within existing processes and addressing them with precision.
According to Ross, the most persistent inefficiencies in insurance often arise in capital allocation and risk distribution. Complex reinsurance structures and multiple intermediary layers can dilute returns and reduce overall system efficiency, creating friction that technology alone cannot automatically resolve.
He added that technology delivers the greatest value when it enables outcomes beyond human capability, rather than simply replicating existing tasks. At the same time, he warned against removing human oversight entirely from complex risk environments, as this could create new forms of dependency and systemic exposure.
Without meaningful reform of internal processes, Ross concluded, greater reliance on technology alone risks compounding inefficiencies rather than eliminating them, potentially making organisational challenges more