Five Building Blocks (and a Staircase): Comparing Paths to Reinsurance Tech Implementation
There is no shortage of frameworks for reinsurers to follow when it comes to implementing technology and all the organisational changes which come with such a task. There’s agile methodologies, there’s cloud migration strategies and, among it all, there’s the pressure to choose the right approach. Or, more accurately, in knowing which ideas to borrow from each.
In a previous article, we explored McKinsey’s “stairway to excellence,” which begins with cultural shifts and ends with structural change. It offered reinsurers a grounded and incremental route into digital ‘transformation’, starting with people before turning to technology.
Now, we’re exploring a different model - one developed by Jeanne Ross of MIT Sloan, the global leader in research and teaching in management, AI, and digital business strategy. The five-block framework offers a more platform-centric lens, designed to help organisations develop and scale digital offerings efficiently and consistently. It’s a model rooted in the belief that digital success relies on reusable systems and empowered teams.
So, let’s break down Ross’ five building blocks and see not only how they might look in reinsurance but how they compare to the more culture-first McKinsey approach. Because you never know - it may not be a case of choosing one right approach but of knowing which ideas to borrow from each!
The 5 building blocks and reinsurance
Of the five blocks, three are technology-focused platforms, and two are organisational capabilities. Here, it is the combination that matters: the technology enables the speed and scale, but the people make it work. Here's how each one fits into the picture.
Operational Backbone: This is the base layer - a shared, reliable system that handles the core day-to-day operations. It ensures your business can run smoothly and consistently, with clean data and standardised processes. Thus, for reinsurers, that could mean aligning systems across underwriting, claims, and finance, so information flows easily and isn’t stuck in silos. The goal isn’t to reinvent these processes, but to stabilise them so your teams have space to focus on innovation, not admin.
Digital Platform: The next layer is the digital platform which can be a flexible set of components that teams can reuse to build and update technology quickly. In practice, this might look like shared data services or component libraries that couple help speed up product launches or create new tools for brokers and cedents. The key idea: build once, reuse often.
Shared Customer Insights: Technology is only useful if it’s solving the right problems. This block is all about collecting and applying what you learn about customers. So I suppose in our industry this might mean something like analysing claims trends or testing new services with a small group of cedents. And it’s not a one-off exercise either! It’s an ongoing commitment to learning.
Accountability Framework: This block focuses on how work is structured. Rather than rigid hierarchies or long approval chains, Ross encourages organisations to give teams clear ownership of their work. For reinsurers, that might mean a small team owning and evolving a self-service pricing tool, rather than passing changes through layers of governance.
External Developer Platform: And finally, block five extends the digital platform to outside partners, allowing them to build on your tools and data. In a reinsurance context, that might mean offering APIs to third-party modelling providers, or working with ecosystem partners to deliver more integrated services to cedents. It's a more collaborative, ‘design thinking’ way of working which isn’t just about building things for clients, but sometimes building things with them.
How do the 5 building blocks compare to the McKinsey Framework?
While both frameworks offer a roadmap for digital implementations, they do come at the challenge from different angles. For example…
People vs. Platform
McKinsey’s model begins with mindset and behaviour, encouraging a grassroots shift towards agile working before touching technology. It speaks to the importance of giving people the space and autonomy to work differently, and building a collaborative environment from the ground up. In contrast, Ross’ framework begins with the operational backbone - the systems and processes that underpin business as usual. It doesn’t dismiss people-led change, but it assumes a solid foundation is already in place before innovation can take hold.
Agility and Autonomy
Both frameworks champion autonomy, but in different ways. McKinsey talks about agile teams working in sprints, sharing knowledge, and making decisions at the front line. Ross zooms out and looks at organisational design, encouraging teams to own and evolve the digital components they work on. So, in a reinsurance context, this raises a question: are you enabling your teams to work in agile ways? Or are you still waiting for permission to change the structure?
Technology’s Role
Neither framework is technology-first, which is a good sign from my perspective. Both recognise that technology must follow people and purpose. McKinsey delays tech investment until culture has matured. Ross builds it in earlier but stresses that platforms are only valuable if used to solve meaningful problems. Again, all true in my books. The message is clear on this front: tech alone doesn’t transform. Tools are only as good as the people using them!
So, whose framework is best?
Well, it doesn’t have to be a case of one or the other (and there are also other frameworks to work with, of course!). In reality, most reinsurance leaders will benefit from both.
McKinsey’s steps offer a gradual entry point for traditional organisations, particularly those early in their journey. It’s especially relevant for reinsurance businesses where tech implementation has historically focused on efficiency over experimentation. Thus, for reinsurers still grappling with legacy systems or siloed functions, McKinsey’s approach may feel more grounded: create the culture first, then layer in technology when teams are ready.
Ross’ model, on the other hand, is powerful for reinsurers ready to scale - those who already have a basic tech foundation and want to push further by structuring their teams and platforms in a more modular, open way.
In the end, no single framework holds all the answers but by understanding the research and structures already in existence, reinsurance leaders can chart a technology path that’s both structured and human-centred. Perhaps it’s not about picking one framework over the other, but about knowing which bricks to lay, and when!