The top three challenges facing life insurance executives globally has been revealed in the 2019 report What’s on the Minds of Life Insurance Executives Globally: Managing Change in a Customer-Focused World.
The joint report by global research organisation, LIMRA and Boston Consulting Group (BCG) asked more than 500 C-suite executives around the world what they consider their greatest challenges to be.
The research found the three biggest internal challenges in 2019 included:
- Change management (for 32% of executives worldwide)
- Customer experience (for 23%)
- Growth (for 22%)
The report noted the contrast in this year’s results to previous surveys, where ‘talent management’ was considered the greatest challenge in 2015 and 2017 and technology, distribution and regulation were also listed during those years.
It added, however, that talent remains a top-of-mind issue in 2019, as it was still included within the top ten challenges.
“Having the right people in the right roles is essential to driving change in an organization,” it stated.
The report defined change management as “actions that equip companies to successfully manage any kind of transformation, with a focus on people, processes, and technology”.
It stated, “…the headwinds facing the life insurance industry (such as low interest rates, declining consumer interest in life insurance, looming competition from disruptive new entrants, and an aging workforce) are growing fiercer.
“Life insurance leaders also are finding that change — real change — proves vexingly difficult to achieve.”
“Life insurance leaders also are finding that change — real change — proves vexingly difficult to achieve.”
The report noted that for life insurers to thrive amidst these challenges, they will need to transform the entire organisation and improve their customer experience.
It added that the research shows life insurance executives recognise the need for their organisations to be agile enough to keep pace with and adapt to rapidly evolving consumer expectations, technology, and economic conditions.
“Such a transformation will allow them to bring products to market in new ways, connect with underserved customer segments, and translate their new strategic vision into reality,” it stated.
Click here to view the full report.