In order to maintain a “sustainable advantage TowerGroup believes that over the next few years, the leading insurance companies will have to embrace these changes and use their scale, financial strength, and flexibility.”
The four main trends according to TowerGroup include:
- The Aging Populace: Insurers must make the aging populace a critical component of their near-term strategic planning. Within the next five years, more individuals will reach traditional retirement age than ever before, which will significantly affect insurers' business operations, distribution, and workforce capacity planning.
- Mobile Technology: TowerGroup estimates that insurers are increasing their spending for mobile technology at a compound annual growth rate of 18%, despite the fact that the year-over-year increase in their total IT spend is only 3%. The proliferation of Internet use and mobile technology will improve the experience of insurance producers, customers, and employees by simplifying complex interactions and automating routine tasks.
- Service-Oriented Architecture: Leading insurers are committing money, time, and energy at the senior level of their organizations to pursue the benefits of service-oriented architecture (SOA). It is an evolution in technology that will provide transparency into business and IT decision-making and the total cost of ownership.
- Workforce Motivation: The need for complex problem solvers is the fastest-growing area of demand in the US labor market. TowerGroup believes that insurers should focus on better use of technology to facilitate complex interactions and create a more adaptive, responsive, and satisfied workforce.
I was not aware that “complex problem solvers” were such a fast growing area of demand in the U.S. economy. When it comes to insurance I would have to agree the need for solving complex problems is much needed.
Comment Preview