Abstract

The insurance industry is under increasing pressure to undergo digital transformation as global markets, customer demands, and regulatory requirements evolve. Despite this growing importance, the sector continues to face persistent obstacles that hinder progress. This study investigates the factors influencing the successful implementation of digitalization in South Africa’s insurance industry, focusing on technological, organizational, and environmental factors derived from the Technology–Organization–Environment (TOE) framework and Dynamic Capabilities Theory. Key challenges identified include legacy systems, inadequate IT infrastructure, limited software capabilities, high maintenance costs, resistance to change, poor communication, insufficient employee readiness, and a lack of coherent digital strategies. Using the Delphi method, data were collected from 16 experts, comprising senior executives from leading South African insurance companies and academics specializing in business management and digital transformation. Through two iterative rounds, the experts evaluated and achieved consensus on the critical barriers affecting digitalization within the sector. The results form the basis for a conceptual framework that links the TOE dimensions with dynamic capabilities, providing actionable guidance for overcoming organizational and technological barriers. The findings highlight the urgent need for innovative strategies that emphasize organizational readiness, leadership, change management, and regulatory alignment. A conceptual framework that integrates the technology–organization–environment (TOE) framework and Dynamic Capabilities Theory is proposed, offering a structured response to overcome these barriers. By linking theoretical perspectives with practical insights, this study enriches the understanding of digital transformation in the insurance sector and provides actionable guidance for policymakers and practitioners seeking to enhance competitiveness, resilience, and customer-centric innovation.

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