Earlier this week we had the pleasure of hosting a Novarica Research Council Meeting in Las Vegas as a prelude to InsureTech Connect 2018. With more than 40 registrants, this provided for both a great networking opportunity for participants, and an opportunity to share key research from our portfolio. The New Normal that is facing both P&C and L&A carriers featured prominently in the discussion, which was highly appropriate given the ITC backdrop. We also had the opportunity to share an early view of data collected from our recent Budgets and Projects study, which illustrates how carriers expect to deploy their IT investments in 2019. The full report will be available next week.
During the ensuing discussion, several themes became clear:
Digital strategies are very much top of mind but there’s not a clear definition of what that means. There are instead a wide range of things it could be; interestingly enough, no one wants to talk about their “analog” strategies, which helps make the point. Everything is digital, the key question is what is needed to support existing and emerging business models.
Innovation is a clear focus, particularly at an event like ITC. That said, this also is a term that means different things to different people. Is it about refining and enhancing existing business models, effectively a tactical response. Or is it a strategic imperative that may well mean blowing an existing model apart (e.g., Amazon, Tesla, Uber)? While either can be true, it is key for carriers to understand which journey they are on, and what level of disruption their corporate brand can truly accept.
Culture is fundamental. We have looked at data, digital and core as being the pillars that support innovative business practices. As a foundation to all that, however, is the corporate culture that defines how, and even if, changes can be incorporated into an entity. Failing to recognize this will, almost without exception, create an environment of “unhappy consequences.” Peter Drucker was right about the intersection of culture and strategy.
Talent management is an overarching concern. With the youngest Baby Boomer now 54 and Millennials set to be half the US Labor Force by 2020, the implications of generational change are no longer an interesting theoretical discussion. For some, this may become a survival imperative. That recognition is leading to some important changes where IT and HR leadership intersect.
The pace of change is picking up, even if the end game is not completely clear. To help foster that clarity we are looking forward to hosting Special Interest Group meetings focused on Individual Life in Boston, MA and Annuities in Des Moines, IA, as well as a Regional Roundtable event in Hartford, in the coming weeks. Activity should never be confused with progress and these sessions can help bring critical focus.
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