A confluence of pressures is forcing many insurance companies to reinvent their traditional operating models.
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A confluence of pressures is forcing many insurance companies to reinvent their traditional operating models.
Insurers are modernizing their legacy systems, creating connected networks across the enterprise, and expanding their vendor partnerships, all while improving employees’ work experience and the skills and tools available to them.
The current moment is a prime opportunity for the insurance industry to redefine and reinvent how the work gets done.
The confluence of pressures is forcing many insurance companies to reinvent their traditional operating models that include large corporate campuses working in siloed departments, along with in-person, rotational training programs. We expect swift changes ahead as insurance companies race to attract and retain top talent by rethinking the work experience and the roles of the future.
While the pandemic disrupted insurance carriers’ financials for a short period, its longer-lasting effect will be on the industry’s workforce. Since March 2020, overall employment levels in the U.S. insurance industry have remained flat, yet wages have increased on average by 8%. Fear—driven by uncertainty in the financial outlook for 2020—brought on a hiring slowdown as carriers reevaluated their operating models in a virtual environment.
In 2021, stagnant employment growth continued despite higher wages, U.S. Bureau of Labor Statistics data shows, indicating workplace transformation may be underway. Carriers have been leveraging labor-replacing technologies in business processes that are ripe for automation, which can result in the elimination of lower-wage jobs. However, the remaining skilled insurance workers are not experiencing wage growth to the same extent as workers in the broader economy, which will pose continued retention and recruiting challenges for insurance companies.
All of this has made clear that the pandemic has accelerated the shift to the future of work and there is no turning back. Insurers are modernizing their legacy systems, creating connected networks across the enterprise, and expanding their vendor partnerships, all while improving employees’ work experience and the skills and tools available to them. Here are three major areas insurers are racing to prioritize:
As automation, 5G, artificial intelligence, augmented reality and virtual reality become more prevalent in the industry, it’s important for companies to have a well-planned upskilling strategy to build a workforce familiar with these technologies. Many of these roles don’t exist today, but will be needed to support personalized customer experiences, immersive employee training and flexible career paths.
As automation, 5G, artificial intelligence, augmented reality and virtual reality become more prevalent in the industry, it’s important for companies to have a well-planned upskilling strategy to build a workforce familiar with these technologies.
For example, some companies are using AR/VR to train claims adjusters, presenting multiple claims scenarios through simulations to help them collect vital information when estimating damages. This can align employees’ needs with real-time collaboration. If done thoughtfully and combined with flexible work options, this approach can reduce operating expenses, break down silos, and deliver significant value to the organization and employees.
The current economic environment is cultivating a culture of innovation and transforming work in a complex business world. For insurance, whether by design or out of sheer need to maintain a competitive advantage, workforce transformation is driving insurers to rethink their strategies related to talent. The current moment is a prime opportunity for the insurance industry to redefine and reinvent how the work gets done.
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