Of the organizations examined, the study found that only one quarter have truly digitalized the value chain, while more than 10% are not appreciably leveraging digital technologies within their current business process. Moreover, more than half are still exploring how digitalization can be applied against their business model.
The ACORD Insurance Digital Maturity Study leveraged the most updated available data to assess each company’s digital maturity relative to its peers, and compare the extent of digital capabilities with the level of value creation. ACORD also identified the issues, implications, and most importantly, execution imperatives around successful digitalization. The findings provide a clear framework for identifying deficiencies and targeting key improvements.
A key addition to the 2025 edition of the study is the “AI & Digital Maturity” addendum, which examined the potential impact of AI across an insurance enterprise and how AI leverage can help less digitally mature organizations to overcome common hurdles and accelerate their digital development. ACORD’s analysis indicates that robust integration of AI capabilities can reduce expenses by as much as 14.6% for P&C insurers — an estimated total of more than $480 billion in savings across the industry annually. Similarly, the annual value potential for life insurers is estimated at over $300 billion.
“The reality of AI and its impact on the industry are widely recognized, and implementation is well underway,” said ACORD CEO Bill Pieroni. “We have seen the performance gap between Digital Competitors vs. Laggards steadily grow year after year – AI leverage is further accelerating that differentiation. A clear strategy and resource allocation around AI, as well as a full spectrum of digital capabilities, is necessary for any insurer to remain competitive in coming years.”
When segmented into digital maturity categories, ACORD’s analysis shows that increasing levels of digital maturity drive improved value creation, and that more digitally mature organizations significantly outperformed the study average. Further, higher levels of digital maturity are associated with more prevalent leveraging of ACORD Data Standards throughout the enterprise as they support capabilities across the entire value chain.
The full 2025 ACORD Insurance Digital Maturity Study white paper, which includes strategic and execution imperatives for successfully developing digital capabilities, is free to download for ACORD members. For more information or to download the white paper, please visit www.acord.org/research.
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