{"id":1377,"date":"2016-12-06T19:48:57","date_gmt":"2016-12-06T17:48:57","guid":{"rendered":"https:\/\/insly.com\/?p=1377"},"modified":"2024-03-17T18:44:00","modified_gmt":"2024-03-17T15:44:00","slug":"what-will-change-in-insurance-industry-in-2017","status":"publish","type":"post","link":"https:\/\/insly.com\/en\/blog\/what-will-change-in-insurance-industry-in-2017\/","title":{"rendered":"What will change in insurance industry in 2017?"},"content":{"rendered":"
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The insurance industry – traditionally cautious, heavily regulated, and accustomed to incremental change\u2014confronts a radical shift in the age of automation. With the rise of digitization and machine learning, insurance activities are becoming more automatable and the need to attract and retain employees with digital expertise is becoming more critical.<\/p>\n

Workforce position-by-position changes<\/h3>\n

McKinsey Global Institute (MGI) has been studying the impact of automation on insurers. Drawing on the proprietary insurance-cost and full-time-equivalent (FTE) benchmarking database, they focused on Western European insurers, forecast the outcomes for about 20 discrete corporate functions, and aggregated the results<\/a>. MGI work indicates that some roles will undoubtedly change markedly and that certain occupations are particularly prone to layoffs; positions in operations and administrative support are especially likely to be consolidated or replaced. The extent of the effect differs by market, product group, and capacity for automation.
\nSteeper declines will occur in more saturated markets, products with declining business volumes, and, of course, the more predictable and repeatable positions, including those in IT. Other roles, however, will experience a net\u00a0gain<\/em>\u00a0in numbers, especially those concentrating on tasks with a higher value added. The broader corporate functions including these roles will lose jobs overall. But some positions will be engines of job creation\u2014these include marketing and sales support for digital channels and newly created analytics teams tasked with detecting fraud,<\/b> creating \u201cnext best\u201d offers, and smart claims avoidance. To meet these challenges, insurers will need to source, develop, and retain workers with skills in areas such as advanced analytics and agile software development<\/b>; experience in emerging and web-based technologies; and the ability to translate such capabilities into customer-minded and business-relevant conclusions and results.
\nOver the next ten years, up to 25 percent of full-time positions in the insurance industry may be consolidated or replaced.
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\nOn the contrary, given the magnitude of these changes and the looming future, it\u2019s important that insurers begin to rethink their priorities right now. These should include retraining and redeploying the talent they currently have, identifying critical new skills to insource, and retuning value propositions in the war for new talent and capabilities. That competition will almost certainly increase as the digital transformation takes hold.<\/p>\n

Consumers are buying online<\/h3>\n

Consumer behavior has changed dramatically. Remember when insurance marketing meant taking out a yellow pages ad and hanging out at the Chamber? To say nothing of the short-lived innovative technologies like fax and voice broadcasting.<\/p>\n

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