Digitalization in Insurance: Expert Dr. Robin Kiera on IT Strategy, Regulation & Social Media

Is the German insurance industry moving fast enough in its digital transformation? According to Dr. Robin Kiera, founder and CEO of the consulting agency Digitalscouting, the answer is a cautious "they could do much more." In a candid discussion, Kiera addresses the four major pressure points for insurers today: sales digitalization, IT landscape overhaul, regulation, and sustainability (ESG). He argues that while progress is being made, particularly in social media engagement, fundamental issues in IT strategy and a defensive mindset toward regulation are holding the industry back. This analysis provides crucial insights for insurance executives, brokers, and IT leaders navigating the complex path toward a more digital, customer-centric future.

The Digital Benchmark: Are Insurers on Time, or Running Late?

When provocatively asked to compare the digital services of insurers to the Deutsche Bahn (German Railways), Kiera's analogy is telling. "If German insurers don't move further, don't digitalize more, and don't develop new products and services to get closer to the customer, they'll end up like the Deutsche Bahn: somehow there, but always late," he states. This underscores a critical challenge: insurers must accelerate their digital initiatives to meet evolving customer expectations for seamless, on-demand service, much like they expect from other sectors.

Spotting Progress: The Rise of Social Media in Insurance

Kiera observes tangible positive developments, particularly in how insurers are expanding beyond traditional sales channels. "I have seen more and more insurers who are not only doing sales in traditional ways... but are also increasingly active on social media," he notes. Platforms like TikTok are being used not just for branding but for genuine customer engagement.

This shift is significant because it multiplies customer touchpoints. A sales force equipped with effective social media strategies can interact with potential clients hundreds of times more frequently. "If sales teams implement this and suddenly a salesperson has a hundred times more contact points with their end customers, I'm relatively sure that will impact business," Kiera explains. This represents a fundamental change from the old model of sporadic, transaction-focused contact.

The IT Conundrum: Billions Invested, But Is It Working?

The recent public critique by Allianz CEO Oliver Bäte of his own company's IT systems—calling much of it "crap"—highlights a widespread industry dilemma. Despite massive digital offensives and billion-euro investments, many IT landscapes remain fragmented and inefficient.

Kiera applauds the courage behind such "anger speeches" but pinpoints the core problem: "Millions and billions are wasted on IT projects to optimize systems that actually need to be replaced." The key question often goes unasked: 'Who benefits?'

He shares a valuable tip from a family business entrepreneur: for every new IT system proposed, two old ones must be decommissioned. "This company does not have such a fragmented IT landscape as many German insurers," Kiera remarks. The lesson for the insurance industry is clear: consolidation and simplification must be prioritized over layering new technology on legacy infrastructure.

Reframing Regulation: From Barrier to Business Enabler

Insurers frequently cite strict regulations—around data protection, advisory duties, and more—as a brake on digital innovation, arguing that tech giants like Amazon operate under lighter constraints. Kiera challenges this defensive posture.

The issue, he suggests, often lies within corporate culture. "Who actually produces all these regulations? They are usually the 'naysayers'," he observes. While compliance with capital requirements and data privacy laws is non-negotiable, the mindset should shift. "My requirement for Head of Legal and Head of Compliance would be: Don't tell me how it can't be done, but how it can be done."

When viewed proactively, regulation can become a competitive advantage and a framework for trust. He gives a practical example regarding social media liability (referencing the Facebook Pages ruling): instead of debating risks, a simple solution is to outsource TikTok channel management to third parties. The goal is to find a compliant path forward, not to use regulation as an alibi for inaction.

ESG and Digital Services: The Power of Communication

On Environmental, Social, and Governance (ESG) criteria, Kiera notes that sustainability was a priority even before the Ukraine war amplified energy security concerns. He acknowledges that many insurers have "cool ideas" and are implementing practical initiatives beyond symbolic gestures like eliminating company cars.

His primary advice for the industry on ESG is about communication: "If you do more on ESG topics, then talk more about it too!" Digital services and social media are perfect channels to transparently share these efforts, build brand reputation, and connect with environmentally and socially conscious consumers. This aligns digital strategy with sustainability goals, creating a cohesive and modern brand image.

Key Takeaways for Insurance Leaders

Dr. Robin Kiera's analysis paints a picture of an industry at a crossroads. The tools and channels for transformation—from social media to cloud IT—are available. The imperative now is for leadership to cultivate the right mindset: one of simplification, proactive engagement, and viewing constraints as puzzles to be solved rather than roadblocks. The insurers who master this will not just be on time for the future; they will help define it.

Insurers and brokers struggle in claims management with high backlogs, rising claim frequencies, skilled labor shortages, and growing customer expectations. Manual processes are expensive and slow.