Library: BCG – Embracing the Human Side of the Bionic Insurer

Executive summary :

Insurance CEOs have a big strategic challenge: successful companies of the future will look very different than they do today.

The role of real people in the digital insurance business is changing

Overall headcount will shrink by as much as 30%, thanks to automation and new ways of working, although staffing will expand in some areas and contract in others.

The digital balance is changing

We expect that approximately 20% fewer people will be needed in claims and central functions such as HR and finance as much of that work becomes automated. At the same time, up to 50% more people will work in high-value human areas such as analytics.

The balance of roles will evolve from being 20% digital today to being about 70% digital (including data scientists, software engineers, and analytics experts) over time. Even people in non-technical roles will need technical skills. Most managers and employees will require some form of new training or ‘upskilling’ to stay with the company (see Exhibit 1).

Don’t forget the real people

When management teams consider the implications of new bionic business models that marry humans and technology more closely than ever before, they tend to focus on the delivery and technology aspects.

Too often they overlook the human changes, which are the hardest part. According to a 2020 BCG survey of more than 5,000 employees and managers in the US, China, France, Germany, and the UK, training and recruitment of new skill profiles were the least successful elements of their company’s digital transformation. This is a big failing.

Build a better bionic business model

As our colleagues recently pointed out in Harvard Business Review, “a digital transformation requires a talent transformation. The two go hand in hand.”

A bionic company needs a robust balance of technology and human enablers (see Exhibit 2). Here’s a roadmap for insurers that want to build the human bionic capabilities they’ll need.

These six steps will help insurance CEOs organise the work, win the right talent, and manage their company’s transformation.

See the full report for more…

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