Munich, December 4, 2025 – The PAC INNOVATION RADAR series on “Digital Transformation Services for Insurance Companies in DACH 2025” analyses the key digital trends shaping the insurance industry in the DACH region and identifies the IT service providers best positioned to support the next phase of industry transformation.
Insurers in Germany, Austria, and Switzerland currently face a difficult balancing act: they must keep their existing IT systems stable and secure, while at the same time modernizing fast enough to meet new market demands. This tension between reliability and innovation is shaping many technology decisions across the industry. To remain relevant and resilient, insurers must move beyond incremental improvements and embrace a holistic, technology-led reinvention of their core business.
Our analysis revealed the key digital trends that are shaping many insurers’ agendas in 2025 and 2026.
Enhancing Customer Centricity through the Expansion of Digital Channels into Central Engagement Platforms. Customer centricity remains a key strategic priority for insurers in the DACH region, driving investments in digital engagement, intelligent services, and AI-enabled advisory tools. Insurers are transforming traditional online and mobile portals into centralized engagement platforms that connect customers, agents, and partners across all channels. The objective is to create a consistent, personalized, and data-driven dialog throughout the entire customer journey.
Elevating Digital Products and Services through Value-Added Services and Ecosystems. Insurance platforms are increasingly evolving into integrated ecosystems that combine core products with lifestyle, mobility, health, and financial services. By connecting customers to partner networks and preventive offerings, insurers strengthen engagement and position themselves as long-term life companions rather than purely transactional providers.
Improving Operational Excellence through AI in Claims Handling. AI is playing an expanding role in claims handling and fraud mitigation. Copilots assist claims adjusters in evaluating cases, verifying documents, and identifying fraudulent activity, including manipulated or AI-generated content. This trend is expected to continue and intensify through 2026.
Improving Operational Resilience through IT Infrastructure Modernization. This remains a strategic priority. Mainframes continue to play an important role and are expected to remain part of insurers’ IT landscapes over the next decade. Cloud migration will remain high on the agenda; however, geopolitical volatility requires insurers to carefully reassess and adapt their strategies.
IT service providers play a crucial role in enabling insurers’ digital transformation.
The PAC INNOVATION RADAR evaluates providers across the entire insurance ecosystem, capturing their ability to deliver innovation, operational excellence, and data-driven solutions.
In the course of our vendor analysis, we identified several providers best positioned to help them on their digital transformation journeys. Providers recognized in 2025 share these characteristics:
- Insurance-focused expertise with mature intellectual property relevant to the DACH market.
- Deep understanding of local and multinational insurers, supported by strong partnerships and operational capabilities.
- Proven track record in innovative, high-quality projects across Life & Pensions, Property & Casualty, Health, and Reinsurance.
- Comprehensive capabilities covering all major insurance segments.
In addition to the overall RADAR, providers are positioned in four segment-specific RADARs: Life & Pensions, Property & Casualty, Health, and Reinsurance. In addition, two key thematic RADARs highlight:
- Customer Engagement – Highlights IT service providers enabling digital transformation in customer-facing processes, including marketing, sales, service, and product development, where digital solutions are reshaping interactions between insurers, customers, and distributors.
- Risk & Claims Processes – Showcases IT service providers driving innovation in core insurance operations, covering underwriting, policy administration, claims management, and fraud detection, where efficiency, automation, and data-driven insights are becoming the new standard.
By connecting trends, vendors, and segment-specific insights, the PAC INNOVATION RADAR empowers insurers to make informed, data-driven decisions about their digital transformation strategies. By weighting the more than 20 evaluated criteria based on their specific priorities and requirements, ICT decision-makers can easily identify the providers that best meet their needs.
For more information and to explore the PAC INNOVATION RADAR 2025, visit: www.pac-radar.com.
About PAC
Pierre Audoin Consultants (PAC) was born out of a vision – entrepreneur Pierre Audoin’s vision of a market research and consulting firm that would help businesses navigate the ever-changing technology landscape. Since its inception in 1976 in Paris, PAC has grown to become a trusted source of market intelligence and strategic guidance in the IT sector.
What sets PAC apart is our commitment to accuracy and up-to-date information. With a bottom-up methodology that involves thousands of interviews and surveys annually, we deliver unparalleled insights and recommendations. Our dedication to innovation and constant updating of the PAC reference model has kept us at the forefront of the industry, serving the largest and most prestigious technology companies worldwide.
As PAC continues to shape the future of software and IT services vendors through its outstanding services, it remains true to its tradition of excellence in market research and consulting.
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