Brooke Vemuri, vice president of IT and innovation at Legal & General America, shared insights with Digital Insurance.
Vemuri discusses how technology and cybersecurity are necessary in an overall M&A strategy.
Can you share about the tech transition that happens during M&A?
Technology transition is often the most underestimated part of a deal. It's not just about integrating systems, it's about aligning data, platforms, and operating models to create value.
A transition plan needs to address both the near-term capabilities like claims, policy admin, and finance systems, plus the longer-term digital roadmap. Companies that succeed treat tech integration as a strategic lever, not a back-office exercise.
How should companies think about IT and data governance during M&A activity?
Early and deliberate planning is key. Insurance is a data-driven business, and in an M&A context, governance isn't just about integration — it's also about protecting sensitive policyholder data and maintaining trust.
Cybersecurity should be front and center: when systems are connected or data is shared across entities, the attack surface expands, and regulators are increasingly scrutinizing how companies safeguard personal information during and after a deal. It's also important to recognize that a full consolidation of policy administration systems isn't always practical or even necessary. For many organizations, the better path is to get creative — using digital wrappers, APIs, and middleware to create seamless user experiences and unlock data-driven insights without forcing everything into a single platform. This approach reduces disruption, lowers risk, and still delivers the digital capabilities needed for growth.
The bottom line: companies should treat IT and data governance as a strategic lever in M&A. That means involving technology and security leaders from day one, setting clear governance frameworks, and being pragmatic about when to integrate — and when to innovate around legacy systems.
What challenges may arise before, during, and after tech transition during M&A?
Before a deal closes, the biggest challenge is usually visibility. Buyers may not have a complete picture of the target's technology, data quality, or cybersecurity posture. Unknown vulnerabilities or weak security controls can quickly put the deal at risk.
During the transition, the complexity of integrating core systems often surfaces. Policy administration platforms, new business systems, and data warehouses are rarely a perfect match. Trying to force full consolidation can stall progress or introduce operational risk. Companies need to be pragmatic as sometimes it's better to use digital wrappers, APIs, or middleware to bridge systems and deliver digital capabilities, rather than migrate everything onto a single platform.
Afterward, the challenges shift to realizing the synergies that justified the deal. That means not only consolidating infrastructure and streamlining processes, but also ensuring the new combined entity has strong cybersecurity governance and can scale digital tools effectively. Cultural resistance and user adoption can be just as difficult as the technical work, so success depends on pairing smart technology decisions with strong change management.
Any advice you would like to share related to this topic?
My advice is to make technology and cybersecurity central to the M&A strategy from day one, not an afterthought. Too often, IT and security teams are brought in after the deal is signed, when the risks and costs of integration are already baked in. The companies that succeed are those that involve technology, security, and business leaders early and give them a real voice in shaping the integration plan.
It's also important to remember that integration doesn't always mean consolidation. Forcing every system onto one platform can be costly, slow, and risky. Sometimes the smarter path is to use digital overlays to create a seamless experience for customers and employees while still respecting the complexity of legacy systems. That approach allows companies to move faster, contain risk, and still deliver the digital capabilities that drive growth.
Finally, don't underestimate the human side. Even the best tech strategies will fail without clear communication, strong governance, and cultural alignment. Treat technology transition as both a technical and organizational change, and you'll be far more likely to realize the value of the deal.
