Abstract

This study examines how digital transformation shapes competitive advantage in the general insurance sector by synthesizing evidence from twenty-five peer-reviewed studies published between 2019 and 2025. The review addresses four key questions: the digital transformation strategies adopted by insurers, the mechanisms through which these strategies create competitive advantage, the organizational enablers and barriers influencing implementation success, and the integrated pathways linking digital initiatives to performance outcomes. Using a systematic literature review (SLR) following PRISMA guidelines, the analysis reveals five dominant themes. Insurers begin transformation by modernizing core processes, supported by technological enablers such as AI, analytics, cloud computing, and IoT. Competitive advantage emerges through cost efficiency, differentiation, agility, and innovation capability when technological adoption aligns with strategic objectives. Organizational readiness particularly leadership commitment, digital talent, and adaptive culture strongly shape transformation outcomes, while legacy systems, cultural resistance, and regulatory constraints remain major barriers. InsurTech ecosystems further accelerate innovation and extend insurers’ capabilities. Overall, the findings highlight that competitive advantage arises when technology integration, organizational capabilities, and ecosystem collaboration operate as a unified system. This review provides an integrated framework that advances theoretical understanding and offers strategic guidance for insurers in a rapidly evolving digital landscape.