Insurance technology solution providers have heard every excuse in the book from marine and energy insurers that continue to resist digitisation. Often, it’s budget related, they don’t have the right people to drive the change, or they simply don’t want to risk a major shift in their ways of working.

But there are three common psychological barriers hindering digital adoption that I’d like to address here: the “face-to-face business” excuse, the “we’ve always done it this way” excuse and “we don’t see the need” excuse.
We know that marine and energy insurance is falling behind, particularly in terms of harnessing data. A 2023 report found that despite 78% of industry professionals agreeing that technological innovation is a positive thing for the maritime industry, 45% admit to have a “volatile attitude” towards technology and 36% say they are actively resistant to change.

Stubborn resistance

Despite this stubbornly high level of resistance, it is important to understand that change will happen in marine and energy. For inspiration, look at the exciting advancements in B2B payments that have transformed the way businesses transact and manage their financial operations.

Digital payment platforms designed specifically for B2B transactions provide streamlined and secure solutions to make and receive payments electronically. Mobile payments have also made significant strides, and the adoption of application programming interfaces (APIs) has revolutionised B2B payments.

Today, seamless integration between different systems and platforms by facilitating real-time data exchange and communication is common, allowing businesses to automate payment processes, synchronise financial data and improve overall transaction efficiency. International supply chains, for example, have benefited from the game-changing efficiency gains enabled by purchase-to-pay automation platforms such as Tradeshift.

Insurance will follow, with benefits including slashing the number of times data is re-entered into systems, removing the burden of finding errors and inconsistencies in data sets, getting an up-to-date overview of portfolio performance with ease, and always receiving the premium before being at risk. The case for improvement is clear, but we have some significant psychological barriers to adoption to overcome before we can enjoy benefits such as these.

Here are three common excuses I have heard many times in conversation with marine and energy |insurance decision-makers.

The "face-to-face" excuse

“We’re a face-to-face business, not dependent on technology for interacting with clients…” The first common barrier to digital adoption in marine and energy insurance is the belief that their business model relies heavily on face-to-face interactions. This, to put it bluntly, is an excuse for inaction. While personal relationships are undoubtedly crucial in these sectors, it is essential to recognise that digital tools can complement and enhance these relationships rather than replace them entirely.

To overcome the “face-to-face” excuse, companies should focus on showcasing the value of digital solutions in
facilitating communication, improving accessibility and reducing geographical barriers. Emphasise the convenience of virtual meetings, collaborative platforms and real-time data sharing which can ultimately strengthen customer relationships and improve operational efficiency.

You can have both. Keep conducting the important face-to-face discussions for negotiations and other interactions. But, you could be leveraging technology and efficient processes to enable improved face-to-face meetings and better data to enhance decision-making, without the need for people to punch data manually afterwards.

My message is to keep the face-to-face aspect, but don’t use it as a barrier to efficiency. The key is to understand that more efficient handling of data in marine and energy insurance will create more time to add value through face-to-face interaction.

The "we have always done it this way" excuse

Another significant psychological barrier is the resistance to change, often rooted in the notion of “we’ve always done it this way.” This mindset can stifle innovation and hinder digital transformation efforts. To address this obstacle, organisations must foster a culture of openness, curiosity and continuous improvement.

Encourage stakeholders to question existing processes and challenge the status quo. Highlight success stories of insurers that embraced digital solutions and reaped the benefits, such as the Australian insurer IAG that saves 150,000 hours per year by deploying nearly 150 “bots” (a combination of software automation and AI). This is the equivalent of 85 staff per year and the company plans to expand the program to eliminate 500,000 hours a year by 2026.

Conduct thorough research to identify specific pain points within the organisation that could be addressed through digital tools. Resistance to digital adoption can be overcome by promoting a growth mindset and emphasising the potential for positive change.

The "i don't need to always chase the latest tech" excuse

Some companies – or specific individuals at companies – may resist digital adoption by claiming that constantly pursuing the latest technology is unnecessary. While it is true that blindly chasing every new trend is not advisable, it is essential to recognise that technology evolves rapidly and can offer significant advantages when strategically implemented.

To counter the “latest tech” excuse, educate stakeholders about the tangible benefits of specific digital solutions that align with their unique business needs. Highlight case studies where digital adoption led to improved efficiency, reduced costs, enhanced risk assessment and increased customer satisfaction.

Emphasise the importance of staying informed about emerging technologies and conducting thorough cost-benefit analyses before making investment decisions.

Winning focus

Most change leaders advise us to focus on what we want to achieve, instead of what we don’t want to happen.

A winning focus starts with the question: “How can we benefit from this development?” This will give your organization a positive and constructive focus to build a winning culture rather than risk falling behind and losing ground.

“Being ready for change and adapting quickly allows you to stay competitive and seize opportunities as they arise. Remember that if you don’t start handling your insurance data properly today, you will inevitably become tomorrow’s loser.” Ronny Reppe,Noria.

Having said this, there will always be situations where one of the abovementioned excuses are legitimate. There are always exceptions to the rule – but insurers should not make excuses to the rule. If you’re not the first mover in your industry, it becomes even more important to be adaptable, both as an organisation and in terms of technology.

Being ready for change and adapting quickly allows you to stay competitive and seize opportunities as they arise. Remember that if you don’t start handling your insurance data properly today, you will inevitably become tomorrow’s loser. Believing that everything will stay the same is a dangerous assumption. Markets evolve, customer preferences shift, and disruptive technologies emerge. Organisations that have a strong belief in the status quo may find themselves left behind. It’s essential to always be on the lookout for the next change and be prepared to manoeuvre in a changing market.

Curiosity and a willingness to explore new tools and approaches are key to continuous improvement. Always be curious about new ways of doing things, stay informed about emerging technologies and actively seek opportunities to improve processes and operations. Training on adaptability should be a regular part of your organisational development. Set aside time each week to train and develop strategies for adaptability. This deliberate focus will help your organisation develop the necessary skills and mindset to embrace change proactively.

By always being on the lookout for the next improvement, you will be better prepared to navigate disruptions and take the next step when something urgent, like a new technology disruption, occurs. Winning focus on digital adoption in marine and energy insurance requires a proactive approach. f you aspire to be a champion of change, start by highlighting the benefits of digital solutions and showcasing success stories.

By providing the necessary levers to catalyse a mindset shift, organisations can navigate the path towards digital adoption and stay relevant in a fast-changing environment.