For many years, the digital workplace lived behind the scenes of insurance operations. It was expected to function reliably but was rarely treated as a strategic concern in its own right. Insurers saw core policy systems, claims platforms and customer-facing channels as the primary drivers of performance, while they viewed the workplace itself as nothing more than a supporting layer.
That separation is no longer realistic. Today, much of the work that determines operational performance happens across systems, teams and locations. Claims handlers, underwriters, service teams and IT support staff rely on the workplace to access information, collaborate and resolve issues quickly. When the workplace struggles to support those activities, the impact is felt in cycle times, service quality and operational resilience.
Across the insurance industry, working conditions have changed significantly. Claims environments are more complex, regulatory oversight is tighter and customer interactions have become more frequent and time-sensitive.
At the same time, insurers have leaner teams, often distributed across regions and time zones. In this context, the workplace is no longer peripheral to performance. It has become central to how efficiently insurers can operate day to day.
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Operational performance increasingly depends on workflow
Core process delays are often the result of everyday friction in how work is done, rather than being caused by system outages or major failures. Employees may need to move between multiple tools to complete a task, search different sources for information or use informal workarounds to bridge gaps between systems. Collectively, these issues reduce productivity and introduce risk.
Over time, this friction affects underwriting turnaround times, claims resolution and service consistency. Support teams spend their time addressing access problems, inconsistent tools and workflow gaps created by the fragmented environment rather than fixing the underlying technical issues.
These challenges are hard to address because they rarely present as a single, clearly visible problem. Instead, they appear as persistent inefficiencies embedded in daily workflows. Without a coordinated approach to workplace design, they keep eroding productivity and limit an insurer’s ability to respond quickly to change.
A modern digital workplace simplifies how employees access systems, information and support. It provides more consistent access, reduces reliance on manual workarounds and enables collaboration across teams and geographies. The result is both a better employee experience and a smoother operational flow across the business.
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Hybrid work exposes structural limitations
Hybrid work has made many of these issues more visible. Distributed teams now need reliable access to systems and information regardless of location, along with consistent tools for collaboration and support. Legacy workplace environments — often designed around centralized access and fixed usage patterns — struggle to meet these needs without introducing complexity or security risks.
As a result, insurers are finding that workplace limitations can constrain their broader transformation efforts. Their investments in application modernization, automation or new digital services deliver less value if employees cannot access tools easily, collaborate effectively or resolve issues efficiently.
In practice, the workplace has become a dependency for transformation rather than a parallel initiative.
From tactical upgrades to infrastructure thinking
These pressures are prompting a shift in how insurers approach workplace modernization. Rather than focusing on isolated upgrades such as new tools, refreshed devices or point solutions, there is a growing recognition that the workplace needs to be designed and governed as infrastructure.
Treating the workplace as critical infrastructure rather than a support function means prioritizing stability, scalability and consistency. It involves establishing secure, standardized access models, common ways of working and clear governance while still allowing flexibility where regulatory or operational requirements differ across regions.
Importantly, it aligns workplace decisions with long-term operating models rather than short-term fixes.
This shift also changes how success is measured. Instead of focusing on individual deployments, insurers should look at sustained outcomes: Reduced friction, improved resilience and the ability to support evolving ways of working without repeated disruption.
Looking ahead
As insurers continue to modernize their core systems, rearchitect applications and adapt operating models, the workplace is increasingly where these investments translate into day-to-day impact for employees and operations. It is where decisions are made, services are delivered and risks are managed.
If you keep treating the workplace as a secondary concern, you’ll find that progress elsewhere is slower and harder to sustain. Recognize it as core infrastructure to start operating with consistency while responding to change and supporting your workforce in an increasingly complex environment.
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WHAT TO DO NEXT
Read NTT DATA’s ebook, Shaping the future of work in insurance, to explore this shift in detail and examine how insurers are approaching digital workplace modernization.