Tech Emerges As Top Concern Of Insurance Execs
Technology will be the top concern over the next five years, a 2021 survey of insurance company executives revealed. This was a change from a similar survey taken two years earlier, when change management was named the top concern for the future.
LIMRA and BCG conducted both of those surveys, and the changes in results over such a brief period of time were discussed during on Wednesday as part of LIMRA’s virtual annual conference.
In 2019, nearly one-third (32%) of execs said they were most concerned about change management, followed by customer experience (23%) and growth (22%). Technology was further down the list, with 18% of executives saying they were most concerned about it.
The landscape changed in 2021, with 37% of execs voicing a concern over technology, followed by interest rates (26%) and growth (24%). Change management dropped down to seventh place on the list, with only 20% of execs most concerned.
The study revealed the execs’ concerns that evolving customer needs will require a broad use of technology, said Nathi Bellizia, BCG managing director and partner. COVID-19 accelerated the digital trends that already were in place prior to the pandemic, she noted, with more than two-thirds of execs saying remote work is one of the drivers of technology use.
Resilience and the ability to change were two of the biggest surprises the pandemic brought to the industry, two life insurance company execs said.
“I am impressed by the ability of the industry overall and my own company to adapt,” said Bill Gaumond, Allianz Life chief financial officer.
Gaumond cited interest rates, equity market volatility and IT security at the top of his list of concerns as he looks ahead to the business landscape.
“We had to change very quickly across all the countries in which we do business,” said Jim Weakley, president of emerging markets international insurance with Prudential. “We were able to drive some new initiatives not only within our organization but with our regulators.”
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.
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