Both life and non-life insurers need more “digital people” – that is, those who know how to use advanced technology. Forward-looking executives recognize that the right talent and skills are necessary to generate strong returns on investments in technology and transformation.
Key trends: Non-life
The recent history and near-term prospects for property and casualty (P&C) insurers can be characterized as a “good news, bad news” story. Growth dynamics improved in 2018, but trade and political uncertainty are likely to limit growth and profitability in the long term, particularly on the commercial side.
Insurers need to adjust how they approach transformation initiatives. To avoid disappointing returns, they must define clearer business cases focused on specific problems or opportunities.
1. Winning the war for talent
As more administrative tasks are automated, the remaining talent will need to be more highly skilled, actively engaged and focused on higher-value analytical work. Thus, reskilling is also a huge priority.
To attract top talent, insurers need to tell a better story and clearly articulate the industry’s societal purpose and value. When insurers can find the right people, they may lose them quickly if the culture feels inflexible.
2. Digitize customer experience, sales and distribution
For years, insurers have sought to improve the customer experience. But too often, it has been primarily about price competition – a dangerous strategy. Insurers that have succeeded have used digital to streamline and personalize the customer experience, including access to human help when necessary. The goal must be to combine the best digital capabilities with the unique benefits of the human touch.
3. Collaborate and compete with “Big Tech,” InsurTechs and other third parties
Insurers are looking to both compete and ally with major tech players, InsurTechs and other new market entrants. When it comes to deploying tech, insurers must start with core issues and clear objectives, making it easier to identify the tools and capabilities they need to solve specific business problems.