How insurers can redesign operations to improve cost, speed, capacity and customer experience

Life and annuity insurers are investing heavily in AI, automation, cloud and core modernization. Yet many struggle to translate those investments into measurable operating leverage.

Fragmented workflows, disconnected data, specialist constraints and governance requirements can prevent technology investments from producing measurable enterprise outcomes.

In The Intelligent Operations Imperative in Life and Annuity (L&A) Insurance, Everest Group examines how insurers can move beyond isolated technology initiatives and build intelligent operations that bring people, processes, AI, automation, data, technology and partners together as one operating system.

The report introduces a practical model for assigning work across three execution modes: “AI led and human-by-exception,” “AI prepared and human approved,” and “human led with AI support.” It also explores how insurers can establish a system of execution around existing systems of record, improving workflows incrementally without waiting for a complete core-system replacement.

Inside, you’ll learn:

• Why individual automation and AI initiatives do not always produce measurable improvements in cost per policy, cycle time, specialist capacity or service resolution
• How workflow fragmentation, data and context debt, judgment and control requirements, and fragmented ownership constrain the value of AI
• How insurers can distribute activities across AI-led, AI-prepared and human-led/AI-supported execution models while retaining human accountability for material decisions
• How a system of execution can connect intake, workflow, documents, decision support, exceptions, data, controls and existing systems of record
• How transformational business process services (BPS) can bring operations, process redesign, technology, data, AI and continuous improvement together
• Which value-stream measures can help insurers track improvements in economics, speed, capacity, customer and distributor experience, control, quality, compliance, and risk
• A six-step roadmap for identifying value leakage, selecting a priority value stream, redesigning work, deploying within controlled boundaries, reusing proven capabilities, and embedding continuous improvement
• What leaders should evaluate when selecting a partner for intelligent operations, including insurance process depth, reusable technology and IP, interoperability, governance, transparent economics, evidence of realized value, and ongoing accountability

Everest Group’s illustrative base-case analysis suggests that traditional BPS can potentially reduce enterprise operating cost per policy by approximately 5% to 6%, while transformational BPS can potentially reduce it by approximately 14% to 15%. Actual results will vary based on factors including product mix, existing offshore penetration, technology estate, process maturity, transaction volumes, operating model and remaining process debt.

The next phase of insurance transformation will not be defined by access to AI alone. The advantage will come from redesigning how work moves across people and technology, proving value within bounded business processes, and scaling the capabilities that demonstrably improve operating outcomes.