Transforming Insurance Through the Modern Workplace

What will 2023 look like for the insurance industry? 

Expert opinion on the matter forecasts a bumpy ride ahead for most organisations as the looming threat of global recession, continuing geopolitical strains, and lingering COVID-19 aftereffects continue. High on the list of significant business concerns for insurers, though, sits inflation. 

High inflation can be attributed to several factors; in part to supply chain issues, steady demand, and energy uncertainty following Russia’s invasion of Ukraine. And whilst rising inflation affects all of us and the businesses we use and work for, it spells double trouble for insurers. This is because the insurance industry faces both inflationary pressure themselves, e.g., the usual business costs such as supplies and cost of work increasing (meaning claims costs will rise), as well as added pressure not to pass on these higher claims costs to consumers (who are already at breaking point due to the raging cost-of-living crisis).  

All of this makes it difficult for insurers to push through premium rate increases while not losing consumer faith. It also makes it difficult to retain the best talent internally, as wages stagnate and insurers compete for skilled workers, not just with peers, but with other, more cutting-edge industries. 

Room for optimism? 

Still, there is hope for forward-thinking insurers; especially those that already effectively transitioned during the pandemic to remote and/or more flexible ways of working. These insurers are well-placed to capitalise on the more agile and powerful digital infrastructure already implemented – and nicely positioned to lean into this technology for longer-term reinvention strategies that will assist in meeting evolving expectations from customers in 2023.  

Considering this, insurers would do well to concentrate on core areas within their control, for example, the way the business is run, where investments are funnelled, and what strategic plans will help them maintain the momentum of flexibility and adaptability already begun over the past few years. 

This may include accelerating upgrades in systems, becoming increasingly proactive and customer-centric, and – perhaps most interestingly for the purpose of this article – flexing in a way that puts people and digital innovation at the heart of their operations.

The modern workplace and people-centricity  

Modern workplaces, whilst highly digital by necessity, are not solely focused on implementing the latest, most advanced technologies. In fact, what the modern workplace really speaks to most of all is people – a consideration insurers may well need to prioritise if they are to achieve profitable growth in the future.  

For instance, mandated lockdowns during the pandemic fuelled people-centric changes in both employee and consumer expectations. It meant that, post-pandemic, employees now put much more weight into benefits such as flexibility, quality and relevance of work, career path, mental wellness, and inclusion. In fact, increasingly, these expectations are used as parameters of job entry, longevity, and reasons for employees leaving the organisation.  

Whilst these are by no means phenomena that are unique to the insurance industry, the sector’s narrower, more ‘traditional’, outlook to employment (e.g., requiring industry-specific qualifications for even lower-level jobs) means that it is now battling challenges including having a ‘stuffier’ reputation amongst younger, qualified jobseekers, as well as an aging workforce. All this suggests that insurers may struggle to fill and retain their workforce throughout 2023, unless change is implemented to workplace culture and outlook.  

From another point of view, customer expectations around engagement and services have also changed by 2023. We shouldn’t forget that the modern workplace makes room, not just for technology transformation and enhancing internal efficiencies, but also to shift emphasis onto investments that improve customer experience, and which bolster data utilisation and analytical capabilities. 

In short, the goal of the modern workplace for insurance companies is to more fully realise the benefits of their technology infrastructure investments and ensure that these organisations lean into the agility, innovation, and people-centricity on offer.  

Remember, the modern workplace is all about transforming systems and processes to make them more user-friendly and efficient; it’s about futureproofing and adding scalability to organisations to secure and upskill the jobs held within; and it’s about improving the working experience significantly for end-users by offering flexibility and reliability for the ‘work from anywhere’ workforce.   

The term ‘modern workplace’, then, is a lens through which we consider the fundamental role technology will play in shaping and enhancing our relationship with organisations – at the same time as those organisations evolve themselves to meet changing human needs/expectations.  

How will the modern workplace help insurers become more people-centric? 

The modern workplace involves a set of technological, physical, and psychological conditions which aim to improve the employee and customer experience, whilst simultaneously optimising the productivity and efficiency of the organisation and its output.  

Below we explore three ways implementing a people-centric, technologically strategic, modern workplace will help insurers remain competitive in 2023:  

If you would like to discuss how Littlefish can help you increase service quality and people-centricity by supporting your transition to the modern workplace, please get in touch via the contact button.