The last year had seen some extraordinary business shifts that were not expected for a very long time. While the insurance business was already undergoing a lot of significant changes before the pandemic, the novel Coronavirus added to the challenges that were underway. Many insurance organizations are still struggling with the evolution of technology and how businesses are transforming from being product-focused to customer-centric.
The new year 2021 will bring new challenges and opportunities for insurers like digital transformation, employee attrition, talent management strategies and insurtech startups.
Though insurance players are investing a great deal in expanding their digital capabilities, but it is somewhat difficult for them to maintain a clear perspective of the right strategy in terms of transformation that lie ahead of them. Amongst all of this, we have identified the top pressing challenges today’s insurer is facing every day and possible solutions that can highly impact business outcomes for them –
Improved Tech Fluency
Technology is going to be the language for tomorrow and is very aggressively becoming an essential part of every business’ ecosystem. Therefore, the insurers are having to get up to speed on automated processes, artificial intelligence, machine learning and various other important technologies that are necessary for their business.
It will be distinguishable for organizations to hire talent that does not only have sound knowledge of the insurance industry but are also tech savvy to undergo the transformation phase smoothly. From an employee perspective, it has multi-faceted benefits. While it helps them to seamlessly grow with opportunities; it will also help them to increase their worth in the open market.
Bolstering Cyber Security
The revolution in the technological side of things has brought cyber risks with it, which is colossal to the insurance business. Understanding the underlying cyber risks can help organizations and individuals prepare for what could be disastrous.
Although investing in digital capabilities can be a strategic approach, it also opens new cyber risks for organizations that are relatively inexperienced in dealing with the challenges of omni-channel environment. As insurers are finding new ways to analyze data, they must also equip workforce to secure data from cyberattacks.
Driving Customer Excellence
Creating an effective customer service training for quality customer experiences gives a competitive advantage to businesses. The insurance industry has seen a drastic change where the business has shifted from being product-centric to customer-focused.
Insurers need to adopt a customer-first approach that would help them to make any change in business trajectory. Companies that can apply this will increase customer retention and lifetime profitability, as well as decrease cost to service. Engaging with a new customer for the first time is always cost consuming and retaining older ones will ensure the same is saved in the long run.
Evolving Digital Workforce
A lot of industry experts have been continuously writing about the changing workplace which can be seen because of the millennial workforce. It is undeniable that the millennial generation of employees has high expectations from their employers, but employers must also keep pace with this challenge to enable them with the ammunitions to showcase results.
While diverting initiatives towards digital, insurers can find efficient and profitable results in very short time. This is not only restricted to creating a digital customer experience, but also creating a digital environment for the workforce.
Reskilling, Not just Upskilling
The New Normal asks to ascertain skills that already exist within the workforce. This is not just limited to the set of skills required to bridge the gap from strategy to execution, but ranges from leading teams in specific environments to shifting momentum in times of crucial needs. A lot of insurance organizations lack a beaming L&D infrastructure, which restricts its employees to reskill and upskill for the changing dynamics.
With businesses changing rapidly, it becomes obligatory for insurers to create a culture of curiosity and self-learning that encourages successive learning. This cultivates a sense of belongingness and affinity that accelerates business performance and create operational excellence.
Developing the Future of Work
Insurance business is undergoing extensive disruption and it is here to stay for a long time. Training leaders and individuals alike to embrace this change can establish your organization at the top of the pack. The impact of knowledge, behavior and mindset of the workforce with comprehensive solutions establishes the foundation that creates sustainability for a very long time.
To prepare employees for the future of work, an organizational culture of learning becomes the utmost necessity. Not only it empowers the workforce with the right skills needed for the job in hand, but also prepares them for the unforeseen challenges that lie ahead.
The fundamental to be successful against these operational challenges is by enabling improvements in how normal businesses decrease training costs and increase time to competency as they grow and develop existing and new talent. Insurance organizations can get a holistic view of what they have right now and how they align these with their business goals. The right focus on the goals to maintain business growth by understanding the challenges will keep you ahead of the competition.