‘Change Management’ Tops The List Of Insurance Execs’ Concerns

BOSTON-- Nearly one-third of insurance executives globally say developing the tools to successfully navigate change is their No. 1 concern.

"Change management" topped the list in the latest global executive survey done by LIMRA and the Boston Consulting Group. The result marked a significant change from recent surveys.

"Talent management" topped the list of concerns in the 2015 and 2017 surveys.

The focus on change intrigued researchers. Not that insurers haven't been aware change is coming, but the intensity of it might be surprising executives, the report authors said.

"The increased urgency expressed in this year’s survey, however, also suggests that efforts to instill and implement change management initiatives have been challenging thus far," the survey said.

"Simply adding new capabilities and tools to the organization will not be sufficient to keep pace with changes in technology, consumer needs and behavior, the regulatory environment, and the global economy."

Alison Salka, senior vice president and director of member benefits and research at LIMRA, said insurers are faced with a most difficult challenge: "It's almost like they have to change the wheels of the car while it's going down the road."

Top Three Concerns

Regulation and technology were among the top three concerns in 2015 and 2017, respectively. Neither appeared among the top three this year. "Customer experience" ranked second and "growth" came in third.

But that does not mean that regulation and technology concerns have gone away, researchers said. In fact, executives were queried on "external" concerns, and 64% of all executives worldwide and 59% of CEOs/presidents cited technology as the No. 1 concern.

"It should not be surprising, as consumer expectations continue to evolve, integrating with digital solutions and tools can effectively improve client engagement," researchers wrote.

This point is reinforced by the fact that “customer/consumer behavior” was listed second as an external force affecting the life insurance business — cited by 54% of all respondents and 52% of CEOs/presidents.

Regulation finished third among external pressures.

'Ready To Do Something'

Executives appear to be tying all concerns into a "customer experience" umbrella, researchers said. Nearly a quarter of executives said this was a top challenge for their company.

As leading companies embrace advanced IT and data capabilities to analyze customer behavior, cross-sell and customize products, other companies appreciate the need to invest in these technologies to compete for consumers’ attention.

“Life insurance executives have long been aware they need to change their organizations and deploy new digital technologies to improve customer experience, become more efficient, and develop products that are more tailored to individual needs,” said Tim Calvert, managing director and partner and global leader of BCG’s Life Insurance practice. “Our research indicates that they are now ready to do something about it.”

Researchers surveyed more than 500 C-suite life insurance executives, nearly one-fifth of them CEOs or presidents, across 62 countries to identify their greatest challenges and the biggest external forces affecting their business and their priorities for the future.