Impact of Digital Transformation on the Insurance Workforce

Cogitate Technology Solutions takes a look at the organizational ramifications as insurance providers undertake digital transformation and seek talent for InsureTech.

As insurance providers undertake exciting digital transformations that enhance customer experience, drive productivity and boosts efficiencies, the focus is often on only the technological advancements and changes. An often-overlooked aspect is the effect of such a transformation on the current workforce.

Most digital insurance journeys will necessitate the workforce to equip themselves with an entirely new skillset. Insurance providers must:

•Recruit new generation of workforce which understands the business and are comfortable with using new and advance technologies.

•Their current workforce includes valuable experts who must be retrained to harness emergent technology .

•Work procedures will be altered, requiring reorientation and retraining of existing staff for new, efficient processes.

•Most insurance providers will also need to address employees’ fear of loss of employment due to obsolete skills and roles.Technology implementation will require revamping processes and training the employees to use new technologies.

•The leadership will have critical role of the Change Agent.They must ensure that the transition from older processes to the new digital insurance ecosystem is smooth and swift.

While Insurance Software Companies in Usa realize that digital transformations will require a workforce with new proficiencies, what are the new skills their employees will need? How do they attract this talent to their organization? Cogitate Technology Solutions presents some pointersand some challenges to watch out for.

Identify missing competencies: The tectonic shift in the insurance industry may be tech-focused, but the organization as a whole, needs to rethink the competencies required for tomorrow. An elementary step is to assess the skill gap in the current technical competency-set and those required to meet the company’s digital transformation goals. The new workforce will include not just data engineers and data scientists but also experience designers, technologists and cloud computing specialists.

Since most insurance houses are on this journey for the very first time, an experienced digital transformation partner who can provide insights based on prior experience and augment in-house capabilities can be invaluable in this regard.

Hiring the right talent: The insurance industry needs to contend across industries to attract the top talent. According to code.org research, there are half a million open IT jobs and the insurance industry will have to battle fiercely for their share of the talent. Their competition will be with the tech giants and the best-of-breed organizations from across the board.

The task will be made harder by the fact that STEMC (“Science, Technology, Engineering, Math and Computers”) graduates usually do not consider the traditional insurance solution as a serious, long-term career option. Insurance will also need to consider a generational shift, especially in the light of the ageing workforce in the insurance industry. Insurance providers need to start thinking of not just selling to millennials, but becoming an attractive employer for them, too. Evolving aggressive strategies to attract, nurture and retain talent with the critical skill sets will be indispensable to keep pace.

While some hiring will be a must for insurance providers, again, a collaboration with the right technology partner who has a ready software talent pool to deploy your digital transformation strategy can make all the difference.

Shifts in management paradigms: The second part of addressing the competency gap is do develop the leadership required to helm an insurance company. Developing managing capacity in-house is an absolute must for any insurance provider who aims to remain relevant in the emergent InsureTechecosystem. New competencies like advanced analytics will become must-haves to be able to leverage the technology and they will need to re-skill themselves to manage a much younger workforce. Managers will need to assimilate skills, insights and technology from across the organization and must be supported with buy-in from the leadership.

Cogitate Technology Solutions has worked with some of the biggest insurance providers in the US on their digital transformation journeys. To understand how we can help you, too, please visit www.cogitate.us.

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