To reap the returns they seek from their digital investments (P&C insurers expect premium income to grow by 5 percent on average as a result of digital initiatives; life insurers anticipate a 7 percent boost), insurers will need to pay more attention to what digital means for the workforce and the talent they’ll need to bring their visions to life.
For example, software and analytics will bring much more automation of many underwriting and claims processes without human intervention. Big data, supplied in real time, will supplement or take the place of historical data models when it comes to assessing risk. Video damage reports, submitted by policy owners, will eliminate the need for many appraisers’ site visits. Such advances will likely shrink the size of the traditional insurance workforce, change the nature of work for many existing employees and require new or enhanced skills.
Insurers will need science, technology, engineering, and mathematics skills, for example, to realize the potential of digitized processes, big data, algorithms and real-time analytics. Creativity and flexibility will be critical in navigating fast-changing policy frameworks and regulations while softer skills—from problem-solving to communications—will help boost sales, enable collaboration and deliver personalized customer experiences. New roles, such as innovation advocates and ecosystem architects, will emerge as carriers move toward fully digital operations.
Attracting and reskilling the workforce with the right roles and skills have become strategic imperatives. Insurers that ignore them will fail to achieve their digital potential.
In my next blog in this series, I will discuss how insurers can attract a younger, more tech-savvy workforce.