Change is inevitable and necessary in the insurance space to remain competitive. Through conference sessions, various media outlets and even speaking with our peers in the industry, you would have to live under a rock not to see the multiple ways that insurance is transforming.
There’s data, telematics, IoT, platforms – the list goes on. But if you’re like a majority of the insurers in the United States, you may be wondering: how does one gain buy-in from the entire group in the name of innovation?
The Challenges of Change Management
LIMRA defines change management as the “actions that equip companies to successfully manage any kind of transformation, with a focus on people, processes, and technology.” But actually applying change management can be an uphill battle. In fact, some insurers may find that they are metaphorically stacking one uphill battle onto another if their leadership is not aligned.
According to a recent Capgemini study, “only 41% of insurance organizations ensure that their data executives align organizational data/analytics strategy with the overall business strategy.” Given that less than half of insurance companies are ensuring alignment, it’s no shock that two-thirds of large-scale transformation initiatives fail. Similarly, it’s also easy to understand why an insurer may have a bit of fear when it comes to transformation initiatives.
Overcoming the Fear of Change
The fear of change is a complex topic that requires (potentially) many layers of remedies from the top down. For a start, aligning leadership to the trajectory in which the business sees itself moving is going to make a difference in itself. Greg Murphy, EVP at Instanda, told PropertyCasualty360, “an inefficient attitude toward change can hinder the delivery of any core system transformation.” And Murphy isn’t wrong. A leader who is aligned with the direction of the company is a much different leader than someone who is just along for the ride.
Promoting confidence from below your leadership teams is also valuable. A blog from Lightico suggests that by promoting a welcoming environment, employees of all levels will feel more secure in sharing thoughts and ideas with the greater group. For a more technical crowd, Capgemini suggests fostering a strong data culture across the organization. This includes adopting agile ways of working and empowering employees at all levels with tools and skills to apply data.
Discover Proactive Strategies to Stay Competitive
Some changes are more valuable than others. As the market continues to shift to meet growing customer expectations, more streamlined, digitalized processes are non-negotiable for any insurer who wishes to remain relevant and profitable. In this webinar, co-hosted by DAIS Technology Inc., you’ll learn the importance of customer experience, common pain points in the industry and how optimizing data is a key component in maintaining profitability. Click the link below to watch the full session.