Accenture Research Finds Insurers Will Succeed at Digital Transformation by Putting People First
April 26 2016 - 8:03AM
Business Wire
While the next wave of digital technologies will transform the
very nature of insurance organizations – including what they do and
how they do it – those that succeed will do so by dramatically
transforming their workforces and cultures to operate in a digital
world, according to a new report from Accenture (NYSE:ACN).
Based on a survey of nearly 450 insurance executives, the
Accenture Technology Vision for Insurance 2016 report – titled
“People First: The Primacy of People in the Age of Digital
Insurance” – states that the next wave of technology – Internet of
Things (IoT), platform-based ecosystems and artificial intelligence
– is maturing and expected to ultimately transform the very nature
of the insurance organization and what it does. In fact, 90 percent
of the insurers surveyed said they expect the pace of technology
change to increase rapidly or at an unprecedented rate over the
next three years. In addition, more than four-fifths (83 percent)
of insurers see IoT bringing about significant change or complete
transformation in the industry.
The report states that the digital trends identified in
Accenture’s Technology Vision 2016 report – intelligent automation,
liquid workforce, platform economy, predictable disruption and
digital trust – offer insurers an opportunity to shift from their
traditional business model to one where they can automatically
assess and price risk directly, individually and in real-time, as
well as help customers avoid losses in the first place. However,
taking full advantage of these trends will require insurers to
dramatically transform their workforce and culture.
“The emergence of digital technologies and the adoption of
platform partnerships is causing a shift in the insurance
workforce,” said John Cusano, senior managing director of
Accenture’s global Insurance practice. “Digital insurers are hiring
employees that are more tech savvy, creative and analytical, and
they are now competing for top scientific, engineering, technology
and mathematics talent. Insurers are also increasingly introducing
‘intelligent automation’ that can consume and analyze vast amounts
of data and perform complex processes to complement this new
workforce. Companies need to be forward-thinking about evolving
their culture to embrace all of these changes.”
To take advantage of these technologies and harness these
changes for maximum benefit, the report states, insurance
executives will need to transform their workforces and cultures by
putting people first. To that end, the report identifies four key
pillars needed for implementing a successful digital culture that
does just that. The four pillars are:
Built for Change
Digital insurers are developing news skills, processes, products
and ways of working. They are shifting toward a workforce that is
flexible and able to keep up with the rapid pace of change, which
requires evolving skillsets. Nine out of 10 respondents (90
percent) believe that training their workforce has become more
important today than it was three years ago; and more than
three-quarters (78 percent) believe a more fluid or “liquid
workforce” will improve innovation by introducing more diverse
thinking and individuals to the process.
Data Driven
Emerging technologies are making it possible for insurers to use
data to form a stronger foundation for decision-making at every
level of the insurance company. Leading insurers will enable
machines to harvest and act on intelligence. Most insurers (86
percent) believe that using “intelligent automation,” driven by
artificial intelligence, will give them a significant competitive
advantage by enabling them to innovate and create new business
processes. In fact, 82 percent of insurers said that automation
driven by artificial intelligence will be seamlessly embedded into
every aspect of the business in the next five years.
Embrace Disruption
Insurers need to embrace disruption and adopt technologies that
will enable them to do things differently–and not like a
traditional insurer. Insurers will use technology to gain a deeper
understanding of the emerging needs of their customers, partners
and employees, and platform-driven ecosystems can help inform this
understanding. In fact, the vast majority (94 percent) of insurers
believe that adopting a platform-based business model and engaging
in ecosystems of digital partners is critical to their success; and
83 percent believe these business models will become part of their
organization’s core growth strategy within three years.
Digitally Risk-Aware
The move toward digital has created many new risks for insurers,
including new security threats, demand for transparent use of
sensitive data, and questions around ethical use of new
technologies. In fact, more than three-quarters (78 percent) of
insurers believe that they are exposed to more risk than they are
equipped to handle as a digital business. ‘Digital trust’ will need
to be considered and integrated into the development process for
everything they do moving forward.
“It’s not about using more technology, but on enabling people –
consumers, workers and ecosystem partners – to accomplish more with
technology,” Cusano said. “It’s about changing the corporate
culture to see technology as a means to help people adapt and
learn, create new solutions, drive change and disrupt the status
quo. Whatever their role, all of an insurer’s employees need to
expect change, understand its impact and keep pace by evolving and
adding to their skills. This will require insurers to develop
workforce strategies that prepare all their workers to adapt to the
new organizational culture, way of working and customer behavior of
the digital era.”
Methodology
Accenture Research conducted a global survey of more than 3,100
business and IT executives across 11 countries and 12 industries to
capture insights into the adoption of emerging technologies.
The insurance industry report is based on the sample of 445
respondents from insurance companies across the world. The survey
helped identify the key issues and priorities for technology
adoption and investment. Respondents were mostly C-level executives
and directors, with some functional and line-of-business leads, at
companies with annual revenues of at least US$500 million, with the
majority of companies having annual revenues greater than US$6
billion.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With approximately
373,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works and
lives. Visit us at www.accenture.com.
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AccentureMelissa Volin, + 1 267 216
1815melissa.volin@accenture.com
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