Insurers will Succeed at Digital Transformation by Putting People First: Accenture

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.

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.”