ServiceNow and DXC: Building the future of insurance

AI and cloud technologies are transforming all organizations. Insurance is no exception. These solutions are helping insurers embrace a digital-first approach and break free from outdated processes and legacy technical debt to improve customer experience and operational efficiency.

At Knowledge 2025, ServiceNow presented alongside our partner DXC Technology to offer insights on the role AI will play in the future of insurance. We also discussed why we’ve partnered to scale AI adoption across insurance organizations.

Here are my key takeaways from the session.

1. Failed transformations must end

Although insurance was one of the first industries to adopt technology, it’s due for a material revolution. Antiquated processes, aging technical systems, and organizational inefficiencies have spawned capability debt and are holding insurers back.

The hornets’ nest of complexity created by dated workflows, multiple systems, and legacy technology is still working—for now. But if insurers want to accelerate growth and service delivery in the future, they’ll need a digital-first approach that emphasizes better workflows, insights, and business integration.

According to HFS Research, “45% of insurers are already investing in technology-driven alignment of the front, middle, and back offices.” Yet not all of these attempts have been successful.

The insurance industry, like others, is littered with failed technology projects, preventing others from starting for fear they’ll be the next statistic. But doing nothing is not an option.

“If you look at the insurance industry, it’s in desperate need of rapid transformation,” said Dan Stanovich, regional general manager of Americas insurance life business process services at DXC Technology.

“There have been many different projects over the years—many failed projects—in which insurance companies have tried to transform themselves and just didn’t quite get there,” he added.

2. AI and the cloud are streamlining service

Rip and replace is not always needed. There are other options. Despite the complexity compounded through years of mergers and acquisitions and a focus on growth, one common theme remains. Insurance organizations need to orchestrate their environments efficiently and effectively to expose the data that fuels an AI-enabled future, for internal teams and external customers alike.

“Assure BPM gives insurers a practical way to modernize—without having to dismantle the systems they depend on,” said Ray August, president and EVP of DXC Insurance Software & BPS. “By exposing data and embedding AI into everyday workflows, we’re enabling insurers to deliver smarter, faster and more personalized customer experiences. With AI, we’re not just modernizing insurance operations; we’re redefining what’s possible.”

Specific use cases for AI in insurance include:

• Policyholder self-service: AI-powered virtual assistants provide guided experiences for policyholders to self-serve common insurance tasks, such as making an address change.
• Fraud detection: AI can analyze patterns in denied loan requests and call data to detect fraud and help live agents identify suspicious activity.
• Process improvement: AI-driven process mining lets agents see how and why something happened. It also uses predictive analytics to compare, test, and improve processes.
• Policy administration and billing: AI can be used to look at billing and beneficiary changes, check billing history, help with withdrawals and reinstatements, process payments, and seamlessly share in context with customers and agents.

3. Process, meet AI

The insurance industry is reaping measurable results from embracing AI and the cloud.

“We're seeing a 30% reduction in the amount of time it takes to actually execute a process,” said Jenna Colman, director of insurance solutions, insurance software, and BPS at DXC Technology. “We're also seeing a 30% reduction in the number of manual processes that exist out there.”

The combination of domain knowledge and powerful AI automation is key to building the most effective insurance workflows and creating a “force multiplier” effect.

“Driving that automation with AI and prebuilt workflows, we're seeing an 80% reduction in how long it takes to build out the processes that you need in the insurance industry,” Colman summarized.

We couldn’t be more excited about this partnership. Together, we continue to drive transformation at scale across global carriers.

Find out how ServiceNow can help you put AI to work for insurance.