Only 28% of APAC insurers prepared for AI shift

Half of insurers attribute poor customer experience to limited technology adoption. 

The life insurance sector is struggling to meet customer expectations, largely due to outdated technology. Over half (57%) of policyholders are dissatisfied with pricing, citing unclear premium calculations, premiums affected by lifestyle factors, and hidden charges, revealed Capgemini’s World Life Insurance Report 2025. 

Despite the demand for improved customer experience, few insurers have successfully adopted data-driven processes for personalized services, hindered by legacy technology and unsuccessful transformation attempts.

Customer experience issues are widespread, with 46% dissatisfied with product features, 45% with onboarding, 44% with service, and 49% with claims and surrender processes. 

A majority of APAC insurers (51%) attribute poor customer experience to limited advanced technology adoption. 

Key challenges from past legacy transformation efforts include integration complexity (42%), misalignment with business objectives (58%), and lack of skilled resources (46%). 

APAC insurers are prioritising initiatives to improve onboarding, self-service, and claims experiences, with 70% favouring a hybrid approach to modernization. 

However, only 28% are currently prepared to fully leverage generative AI capabilities.