Technology Trends Shaping the Future of Finance in Insurance

This article explores game-changing technological factors that have the potential to transform the CFO’s role and create a culture of excellence and success in tech-led transformations within the insurance industry.

Market dynamics are currently stressing corporates and control functions, with finance at the forefront:


  • Geopolitical tensions make it challenging to manage international groups.

  • Dynamics of prices demand better control of costs and their drivers.

  • IFRS17/9 displaying impacts beyond accounting.

  • Focus on ESG in non-financial disclosure will require additional data integration and changes in reporting.

  • New emerging risks, such as cyber and natural disasters call for higher responsiveness.

  • Digital accelerators — automation, AI, GenAI — are reshaping the industry as we know it.

  • Boards and Regulators now increasingly require CFOs to provide scenario analyses and simulations, tasks that were less common in the past and often done using unstructured tools like Excel.

City glass buildings


Against this context, top-tier CFO functions are developing certain differentiating traits:


Female leader
  • Strategic advisors: helping organizations gain competitive advantage, for example in M&A or product development, with insights and steering.

  • Data custodians: under disciplined, unified governance, they leverage data to support business units and functions, and establish company-wide methodologies for managing financial data, of which the CFO is the true owner.

  • Efficient operators: focusing on value, running lean, automatized operations.

  • Future managers: combining traditional background with business, technology and client-service culture.

  • Tech masters: leveraging innovation for efficiency and effectiveness.


In this journey of transformation, technology will be an ally to achieve strategic objectives across all dimensions of finance.


This article examines four tech mastery game-changing factors that BCG believes can transform the CFO’s role — creating a culture of excellence and achievement in tech-led transformation for the insurance sector.


Exhibit showing game changers shaping the future of finance


Game-changer 1: GenAI-driven transformation



Smart automation (i.e. robotics, AI, GenAI, …) favors CFO re-organization towards efficiency, grouping activities by nature, with specialization, no redundancy, and a high level of standardization.


The adoption of GenAI-driven smart automation is not only enhancing functions efficiency, but it is also redefining the role of human capital in finance functions, channeling efforts towards more strategic, value-added activities. As developed by BCG, GenAI-driven smart automation impacts three key CFO functions:


  1. Specialized functions, such as actuarial, investor relations and tax are supported by GenAI with more precise actuarial reserving, strategic financial hedging, and insightful investor relations, facilitating better capital allocation, risk management, and transparency.

  2. Decision support functions, such as financial planning and controlling, and business intelligence, are aided by GenAI in critical activities such as budgeting or sensitivity analyses.

  3. Finance operations will be also transformed: automating repetitive and manual tasks and streamlining processes for efficiency


Game Changer 2: Data explosion



The magnitude of data has become a defining characteristic of the digital age, profoundly impacting the insurance industry and the CFO function as well. This shift is not only about managing huge volumes of information, but also leveraging it to drive strategic decisions, enhance customer experiences, and foster innovation.


To achieve this, it is imperative to define:


  1. Clear taxonomy, hierarchy, roles and responsibilities enabling data lineage and traceability.

  2. Integrated data domain frameworks with deep granularity, including internal and external data.

  3. Group-wide architecture, centralized (e.g., data lake/data platform) or distributed (e.g., service mesh architecture).

  4. Common reporting framework, reducing redundancy and time-consuming data preparation.


Game changer 3: Cloud


Cloud adoption represents a paradigm shift in the insurance industry’s approach to IT infrastructure. With the promise of a future-ready, scalable infrastructure, insurers are increasingly embracing cloud and cloud-driven paradigms (e.g. as-a-Service platforms) to simplify their application landscape.


This trend facilitates agility, cost efficiency, and the ability to rapidly deploy new services, ensuring that finance also can respond more swiftly to market changes and internal customer needs.



Game changer 4: Low-code/no code development


The rise of low-code/no-code development applications is democratizing the creation of digital solutions in several industries. Such a trend, also enabled by ease of access and availability of extensive datasets, is also empowering finance experts to become citizen developers, enabling them to build applications that meet their specific needs without requiring extensive programming knowledge. The result is a more versatile and reactive finance function, capable of adapting quickly to change and innovating at a faster pace.


The combinatorial effect of these changers will impact the CFO function across the entire value chain, by enhancing operational efficiencies, driving innovation, and by better meeting the evolving needs of customers.


Exhibit showing how Finance will operate within and outside the company


There won’t be any CFO’s tech transformation without a talent pool capable of managing these technologies, a strong collaboration between IT and Business functions and a wise selection of strategic partners. This integrated approach ensures that the finance function not only adapts to the digital era but thrives, driving innovation and efficiency across operations.


In the journey towards digital finance transformation, we envisage 6 key steps that encompass our approach:




  1. Identification of a long-term Finance Tech North Star (FTNS) (e.g., Enabling high level of efficiency using digital technology at scale) and a future-state operating model (e.g., from a decentralized to a convergent, lean and efficient setup) over a three- to seven-year horizon.

  2. A rigorous health-check to assess current digital capabilities against the FTNS and operating model (e.g., processes, organization, technologies, people).

  3. Detailed design of the TOM that incorporates outcomes from the health-check.

  4. Assessment, planning and prioritization of relevant use cases and opportunities.

  5. Agile implementation of selected use cases, evaluating them on different levels such as strategic alignment, impacts (e.g., customer, financial, risk impacts), feasibility, scalability, time to value.

  6. Continuous improvement, requiring adjustments to the TOM based on execution outcomes.


A few key guidelines emerge as the basis for a successful transformation in this sector:

Hand with bubble

Plan for the future

Ensure your team designs a target state scenario that encompasses short, medium, and long-term periods.


Connect initiative to tangible results

It’s essential to commence with cases that liberate capital, reduce costs, and free up valuable resources. This focus ensures every action taken has a direct impact on efficiency and profitability.


Align with company-wide initiatives

In the quest for innovation and success, it’s key to stay aligned with company-wide initiatives. This means capitalizing on ongoing evolutions across the company — a good example of which would be the recent explosive development of data platforms.


No compromise

Lastly, it’s key to adopt modern development principles and leverage automation at scale, ensuring the company remains at the forefront of technological advancement and operational efficiency.

About the Authors

Niccolò Bergamini

Managing Director
Rome, Italy

Niccolò Bergamini is a Managing Director at Platinion’s Rome Office and leads finance transformation and technology strategy for the insurance sector. His expertise includes large multi-national transformation programs in the corporate center functions, data strategy & analytics and platform-driven changes. Prior to BCG, he was the global leader of the Finance & Risk Insurance practice at another consulting firm. Niccolò graduated from Luiss Guido Carli University in Business Administration, focusing on Corporate Finance.

Fabrizio Pessina

Managing Director and Senior Partner
Milan, Italy

Fabrizio Pessina is a Managing Director & Senior Partner at the BCG Milan Office, where he significantly contributes to the tech innovation landscape in insurance across EMESA. At BCG, Fabrizio leads efforts in IT architecture transformation, focusing on the implementation of data platforms, microservices, and cloud solutions. He has been instrumental in redesigning IT operating models to embrace digital, agile, and DevOps practices, and in optimizing IT costs. Fabrizio’s leadership has driven substantial advancements in digital and IT operations for leading insurance groups, underscoring his pivotal role at BCG. He holds an MSc in Mechanical Engineering from Politecnico di Milano.

Davide Corradi

Managing Director & Senior Partner
Milan, Italy

Davide Corradi is a Managing Director & Senior Partner at BCG’s Milan office, global leader of Finance and Risk practice. Davide has driven several global initiatives on business strategy, digital transformation, product development, claims management, salesforce effectiveness, shareholder return enhancement and organization governance improvement. He holds a Master’s in Electrical Engineering and a Bachelor’s in Economy and Business Management from the University of Bologna.

Edoardo Palmisani

Managing Director and Partner
Rome, Italy

Edoardo Palmisani is a Managing Director & Partner at BCG, leading Corporate Finance and Strategy in EMCR. His focus areas include Financial Services and Sovereign Wealth Fund practices, where he has crafted strategies for equity, venture capital, and national infrastructure funds. Edoardo’s background includes a degree in Financial Markets from LUISS University and an MBA from the Booth School of Business. His previous experience spans investment banking and private equity.

Marco Nevicato

Milan, Italy

Marco Nevicato is a Principal at Platinion’s Milan Office, specializing in digital and IT projects within the insurance industry. With 10 years of experience, he has contributed to transformations in IT infrastructure, digital strategy, and operational models for European insurers. Marco’s skills include IT cost optimization, agile methodologies, and DevOps enablement. Before BCG, he worked in IT strategy consulting focused on the banking sector.

Michele Millosevich

Milan, Italy

Michele Millosevich is a Partner at BCG and a senior member of the climate & sustainability (ESG) practice in insurance globally. Joining BCG in 2017 after over four years in consulting, he has led projects on climate transition, Net Zero strategies, and capital management for global insurers. Michele earned a Master’s in Management Engineering from Milan Polytechnic University.

Michele Deluchi

Milan, Italy

Michele Deluchi is a Manager at BCG Platinion’s Milan office. Over the years, he has participated in several large-scale digital transformation projects, mostly within Banking and Insurance. He has specialized in Enterprise and Data architecture, with a focus on Data Platforms design and Analytics use case implementation for European clients. Further, Michele is an IBM-attested Professional Data Scientist, and and a core contributor to BCG’s Data for Sustainability agenda.

Filippo Magnani

Senior IT Consultant
Milan, Italy

Filippo Magnani is an Senior IT Consultant at BCG Platinion in Milan, specialized in digital transformation and IT strategy global programs. His work spans insurance, industrial goods, and consumer electronics, with particular focus on strategic partner selection, operating model design, and business case development. Previously, he was a Technology Consultant at Accenture, focusing on digital platform projects. Filippo holds a BSc and MSc in Management Engineering from Politecnico of Milan.

Giulia Di Cerbo

Milan, Italy

Giulia Di Cerbo is a Consultant at the BCG Milan Office, and a member of the Risk and Compliance and Insurance practices. Prior to joining BCG, she worked as Manager at PwC, bringing over 7 years of experience in the financial services landscape, with a focus on auditing global insurance players. She holds an MSc in Finance and Business Management from Milan Cattolica University, and she is qualified as Chartered Accountant.