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Digital Transformation at Debeka

Carsten Rönneburg
Feb 5, 2025 8:58:00 AM

Digital Transformation at Debeka: Insights from Roland Weber

The insurance industry is undergoing a profound transformation, driven by changing customer expectations, evolving regulatory requirements, and rapid technological advancements. At the heart of this transformation stands Debeka, one of Germany’s largest insurance groups. Roland Weber, Member of the Board of Directors at Debeka, recently provided a detailed account of the company's ambitious modernization efforts. His insights offer a valuable perspective on the challenges and opportunities of digital transformation in a complex and highly regulated industry.

Roland Weber Mitglied der Vorstände Debeka 1000x667

The Need for Change

Weber emphasized that modernization is not just an option but a necessity for insurers operating in today’s landscape. Traditional insurance IT systems—especially in the backend—were built for stability and efficiency, not for the agility demanded by modern digital interactions. At Debeka, some of these core systems date back to the 1980s and 1990s. While they have been stable and effective, they also pose significant challenges:

  • Limited Flexibility: Older systems make it difficult to quickly adapt to new customer needs or regulatory requirements.
  • Complex Integration: Connecting legacy IT to new digital services, such as customer portals and mobile apps, is cumbersome.
  • Scarcity of Skilled Workforce: Finding IT professionals with expertise in aging technologies like COBOL has become increasingly difficult.

Given these factors, Debeka embarked on a large-scale transformation to modernize its IT landscape while maintaining the high levels of reliability its customers expect.

Balancing Stability and Agility

One of the key challenges in modernizing IT infrastructure is finding the right balance between stability in backend systems and agility in frontend development. Weber explained that Debeka has adopted a two-pronged approach:

  1. Backend Modernization: Migrating from custom-built legacy systems to standardized, vendor-supported solutions.
  2. Frontend Innovation: Developing modern customer and agent-facing applications that can be rapidly iterated and improved.

This dual strategy ensures that while Debeka moves toward a more flexible IT architecture, it does not compromise on the operational stability required for critical insurance processes.

Strategic Partnerships Over Custom Development

Historically, Debeka built most of its IT systems in-house. However, in light of the increasing complexity of software development and the need for speed, the company has shifted toward working with a select group of strategic partners. For example:

  • Microsoft: Cloud services and infrastructure.
  • MSG: Standardized insurance solutions for health and life insurance.
  • Adesso: Product engines and business process support.

By leveraging proven solutions from these partners, Debeka can focus on differentiation in areas that matter most—such as customer experience and operational efficiency—while avoiding unnecessary complexity in core IT functions.

The Role of Regulation and Cybersecurity

As a major private health insurer, Debeka operates in a sector that is classified as critical infrastructure. This means that every major IT change is subject to intense regulatory scrutiny. Weber highlighted that cloud adoption, for example, had to be carefully managed in alignment with BaFin (Germany’s financial regulatory authority).

In addition, the growing threat of cyberattacks presents an ongoing challenge. Historically, insurers operated in relatively closed IT environments, but with the shift toward more open, digital-first interactions, the risk landscape has expanded. Ensuring security without hindering innovation remains a top priority.

Customer Expectations in the Digital Age

Modern consumers, shaped by experiences with companies like Amazon and Google, expect seamless digital interactions. Yet, the insurance industry has traditionally been slow to adapt. Weber acknowledged that insurers must fundamentally rethink their role—not just as financial service providers but as customer-centric solution providers.

For Debeka, this means:

  • Expanding self-service capabilities: Customers should be able to manage policies, submit claims, and track progress online with minimal friction.
  • Enhancing digital communication: Moving away from paper-based processes and offering digital-first interactions.
  • Personalization through data: Using analytics to better anticipate customer needs and offer relevant products and services.

Collaboration as a Competitive Advantage

Weber also stressed that insurers cannot tackle these challenges alone. Instead, they must collaborate—both with other insurers and with technology providers—to build ecosystems that drive efficiency and innovation.

For example, Debeka has co-founded initiatives such as:

  • Meine Gesundheit Services GmbH: A joint venture with other insurers and Compugroup Medical to create a digital health platform.
  • SDR Insurance Platform: A collaborative effort involving Allianz, Signal Iduna, HUK-Coburg, and Debeka, aimed at building a shared software ecosystem for insurance operations.

By pooling resources and expertise, insurers can accelerate digital transformation while maintaining cost efficiency.

Managing Organizational Change

IT modernization is not just a technological shift—it is a fundamental change in how an organization operates. Weber noted that for an insurer like Debeka, which employs around 16,000 people (including 800 in IT), such a transformation requires careful management.

Some key aspects of Debeka’s approach include:

  • Restructuring IT teams: Moving away from siloed IT departments toward an integrated approach with clear accountability.
  • Upskilling employees: Providing training to help existing staff transition from legacy technologies to modern development practices.
  • Transparent communication: Ensuring that all levels of the organization understand the transformation goals and how they will be affected.

The restructuring was extensive—every IT employee received a new employment contract, and leadership roles were redefined. Impressively, these changes were implemented without a single labor court case, a testament to Debeka’s careful handling of the process.

Looking Ahead: The Road to 2028

Debeka has set itself the ambitious goal of completing its core IT transformation by 2028. This includes:

  • Replacing legacy backend systems with modern platforms.
  • Expanding the use of standard software and reducing custom-built solutions.
  • Strengthening digital customer engagement.
  • Enhancing automation to improve efficiency.

Weber acknowledged that such a transformation is a massive undertaking, but he expressed confidence that Debeka is on the right path. By focusing on strategic partnerships, prioritizing customer experience, and embracing collaboration, the company is positioning itself for long-term success in an increasingly digital world.

Conclusion

Debeka’s transformation journey, as outlined by Roland Weber, highlights the realities of modernizing IT in a traditional industry. It is a complex but necessary shift—one that requires not just technological changes but a complete rethinking of business processes, organizational structures, and industry collaboration.

For other insurers facing similar challenges, Debeka’s approach offers valuable lessons:

  • Stability and agility must be carefully balanced.
  • Strategic partnerships can drive efficiency.
  • Customer expectations should guide innovation.
  • Collaboration is key to long-term competitiveness.

With a clear roadmap and strong leadership, Debeka is setting a benchmark for how a legacy insurer can successfully navigate the digital age.

A Note to Our Readers: This article discusses some of the most important ideas Roland Weber shared at the executive exchange, but to understand the full context and depth of his ideas, we strongly recommend you watch his masterclass in the video below. Should you have any questions or concerns, do not hesitate to message us.