The great rewiring: Why insurance operation leads are the new CTOs

The biggest change in insurance isn't about technology. It's about who's driving it. Operations leaders, not IT, are now guiding the direction of digital transformation.

The insurance industry is in the middle of what I call The Great Rewiring. It's a complete reconfiguration of not just systems, but decision-making power and accountability. The line that once separated operations from technology is disappearing. And it's the operations leaders, not CIOs or CTOs, who are steering modernization.

For decades, IT teams have led the charge in implementing new platforms, upgrading infrastructure and selecting vendors. But today, the pressure points aren't abstract technology goals. They are business realities like billing errors, policy issuance delays and customer frustration. The people who know those pain points best are the ones managing them every single day.

The technologies these leaders rely on have evolved from pilot projects to essential infrastructure that now supports underwriting, billing, claims and service. Digital payments are equally critical, with customers expecting the same ease of use from insurers that they experience in retail or banking, with nearly 64% of consumers saying they would consider switching insurers for a better digital experience. Budgets face greater scrutiny, and regulators are demanding tangible results, pushing every technology investment to demonstrate clear business value. The experimentation phase is over. It's now about execution.

Why this shift is happening now

The drivers of modernization have evolved dramatically. Automation and AI are powering full-scale systems that influence every corner of insurance operations. Data and customer expectations are reshaping how work gets done, while cost pressure is forcing every department to show measurable returns. Only 25% of transformation initiatives in insurance are considered highly successful, underscoring the need for stronger operational leadership to close that gap.

Insurers know they can't slow down. Nearly every insurance executive agrees that digital transformation is essential to remain competitive, and 88% say legacy systems are slowing progress. That's why 59% of insurers are increasing their digital budgets and just 1% cutting back. The path forward is clear. It's about empowering the right leaders to make it happen.

Redefining leadership in insurance

This new reality requires operations leaders to think differently about their roles. For years, their success was measured by efficiency and stability. Today, they are expected to be agents of transformation. That means shifting from maintaining processes to redesigning them, from being end users of technology to acting as its architects, and from working in silos to leading hybrid teams that blend business expertise with technical fluency.

They may not write code, but they understand how systems connect: how billing platforms, payment gateways and policy systems need to work in sync to create a seamless experience for policyholders and brokers. They know where friction lives and how data flows. This makes them essential partners in evaluating vendor solutions, designing implementations and ensuring that new systems deliver true value.

The result is a critical and strategic partnership between the CIO/CTO, and the teams they lead, and leaders and their teams in operations. IT provides the technical depth and infrastructure expertise, while operations define the outcomes that matter. In the best organizations, these two functions act as co-pilots. Each with distinct roles but one shared destination.

What insurers must do next

For insurers, the implications are significant. Decision-making structures need to evolve so that operations leaders have a clear voice in technology roadmaps. Vendor selection processes must reflect the operational perspective, with solutions evaluated on their ability to solve day-to-day challenges, not just shiny new models. Training and professional development should also focus on building hybrid skillsets, helping operations leaders become more fluent in technology and IT leaders become more attuned to business outcomes and customer needs

Momentum is building. Two-thirds of insurers have already accelerated their digital transformation efforts, and the digital insurance platform market is projected to reach $229 billion by 2029. That kind of investment demonstrates how urgently the industry is trying to shed its legacy practices and adopt new models. But for those dollars to matter, insurers need leaders who can bridge the gap between technological potential and operational reality.

Success must also be measured by outcomes that truly impact customers and partners: Are policies issued faster? Are billing errors down? Are payments easier to process and track? Are agents and brokers spending less time on manual follow-up? Those are the metrics that show real progress, and operations leaders are best positioned to help deliver them.

The future belongs to hybrid leaders

Insurance has always been about trust and execution. Customers trust their coverage will be there when needed. Carriers trust their systems will process billions in premiums and claims accurately. Operations leaders sit at the very center of this equation.

That is why they are emerging as the new architects of technology in insurance. Not because they're replacing IT, but because they understand the business problems technology must solve They see the friction, the bottlenecks and the customer moments that matter most.

The future of insurance will be shaped by operations leaders who live inside the work, in the billing cycles, payment reconciliations and policy workflows where real transformation starts. They see what's needed before anyone else does, and that perspective is what makes them the true catalysts for change. The Great Rewiring is already underway. Those who embrace it won't just manage the change. They'll define what comes next.