Digital Transformation in Back-Offices of German Insurance Companies

Abstract

Digital transformation affects the back offices of incumbent insurance companies. Digital innovations are implemented to be able to offer customers new products and services. We conduct multiple case studies with four German insurance companies. We analyze the impact of digital transformations on company-internal stakeholders with the Technology-Organization-Environment (TOE) framework. We derive 12 influencing factors and corresponding practical implications. Back-office systems are updated using standard software, if available. The goal is to stay flexible for future developments, too. State-of-the-art technologies are tested and only carefully implemented. Necessary reorganizations have significant impacts and are accomplished best with a trusting company culture, good internal communication, and well-trained employees. Efficiency gains from automating routine functions can and are intended to counter labor shortages. After the implementations, skilled employees must handle more specialized and demanding tasks, which cannot be automated easily. Impulses for digital transformation mainly result from continuously changing customer requirements and respective competitive pressure, while regulatory requirements often complicate implementations.