25.03.2026

Author: Jessica Wick

8 hidden challenges that still slow down digital insurers

Digital transformation has been a strategic priority for insurers for years; core systems have been modernized, customer portals introduced, and mobile apps rolled out. On paper, many organizations appear highly digital.

And yet, processes are still often inefficient, expensive, and more fragmented than expected.

Why?

True end-to-end digitalization breaks down in places that are easy to overlook and therefore rarely addressed systematically. Across the industry, recurring challenges continue to undermine even the most advanced systems. Many of these challenges originate at the very beginning of the process and quietly cascade through the entire value chain. Yet practical, easy-to-integrate solutions already exist.

Here are eight of the most common challenges:

1. Processes that look digital, but aren't

At first glance, many insurance processes appear fully digital. But behind the interface, however, they often revert to emails, PDFs, or manual handling. What looks like a seamless journey is, in reality, a patchwork of digital and analog steps. This illusion of digitalization makes the problem harder to detect and even harder to fix.

2. The first mile is still analog

The biggest bottleneck often occurs right at the start: data capture. Instead of providing structured digital input, customers are still asked to:

download and complete forms
send emails
upload scans or photos

As a result, critical information enters the process in inconsistent and unstructured formats.

Everything that follows is affected by this initial weakness.

3. Customer input is fragmented

Insurance processes rarely involve a single interaction. Customers, partners, and third parties all contribute information, often across different channels. As a result, information is frequently incomplete, duplicated, or inconsistent. This fragmentation creates friction early on and prevents a smooth, continuous workflow from emerging.

4. Manual data entry creeps back in

Once unstructured information reaches internal teams, manual work begins.

Employees must review documents, extract relevant data, and re-enter it into core systems. This process is time-consuming, error-prone, and costly. It also undermines the efficiency of otherwise highly automated backend environments.

5. Endless back-and-forth communication

Incomplete or unclear information leads to follow-ups, requiring teams to reach out to customers for clarification, request missing documents, or correct inconsistencies. Communication becomes a “ping-pong” exchange across channels such as email, SMS, and phone. Each additional loop adds delay and frustration on both sides.

6. Bottlenecks before core systems

The most advanced systems in the organization are rarely the problem. Core platforms for claims, underwriting, or policy management are typically highly optimized. However, they can only operate efficiently if they receive structured, complete data. When upstream processes fail, these systems are left waiting, creating bottlenecks before processing even begins.

7. Automation hits a hard limit

Automation depends on consistency. If data arrives late, incomplete, or in varying formats, it cannot scale. Even advanced technologies cannot compensate for poor input quality. As a result, organizations hit a ceiling: beyond a certain point, processes cannot become faster or more efficient without fundamental changes.

8. Customer experience and compliance suffer

Customers expect fast, seamless interactions. Being asked to print, sign, and send documents contradicts those expectations and introduces unnecessary friction. At the same time, fragmented processes make it harder to ensure compliance. Missing or inconsistent data increases risk and complicates audits. What begins as a small break in the process becomes a strategic challenge. This is where the 'last mile' becomes critical: only a legally binding, integrated signature such as Swisscom Sign turns a digital interaction into a valid, actionable record.

Conclusion: The problem isn't where you think it is

Many insurers have invested heavily in digital systems, and for good reasons. But digital transformation does not fail in core systems. It fails at the edges.

Small interruptions at the beginning of a process, when information is first captured, propagate through the entire workflow. They slow down operations, increase costs, and limit the impact of every downstream investment.

Closing these gaps requires a shift in perspective: from isolated digital touchpoints to truly end-to-end digital processes. By bridging the gap between smart data capture and the final, legally secure signature through Swisscom Sign, insurers can finally unlock the full potential of their digital infrastructure.

These challenges are not isolated; they are symptoms of a deeper structural issue. Learn how insurers can eliminate process fragmentation and build fully digital, scalable processes in the free Swisscom whitepaper.

Customer success stories

Customer success stories

8 hidden challenges that still slow down digital insurers

1. Processes that look digital, but aren't

2. The first mile is still analog

3. Customer input is fragmented

4. Manual data entry creeps back in

5. Endless back-and-forth communication

6. Bottlenecks before core systems

7. Automation hits a hard limit

8. Customer experience and compliance suffer

Conclusion: The problem isn't where you think it is

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