This research investigates the effects of digital transformation on the performance of insurance firms listed on the Amman Stock Exchange (ASE). It delves into the ways in which the integration of digital technologies—particularly in fields such as artificial intelligence (AI), big data, and cloud computing—affects financial performance indicators, including ROA (ROA) and ROE (ROE). Employing a quantitative methodology, the study evaluates data from various insurance companies, taking into account employee demographic factors such as gender, age, educational qualifications, and monthly income as mediators. The findings indicate significant statistical correlations between the adoption of digital technologies and enhancements in financial performance, with employee demographics serving as vital mediating variables. In light of these results, the research advocates for insurance companies to further pursue digital transformation to improve operational efficiency and financial results, while also emphasizing the importance of training programs aimed at enhancing employees’ technological competencies. Moreover, consideration should be given to the age and income of employees to fully leverage the advantages of digital systems. This study adds to the comprehension of the strategic significance of digital transformation in boosting business performance within the insurance sector.