Insurance IT Services – State of the Market 2021: Future-readying Insurance Business Through Continuous Digital Unraveling
State of the Market Report
The coronavirus pandemic and the resulting economic fallout have adversely impacted insurance businesses, leading to demand stress, revenue compression, and profitability pressure. In addition, consumer needs, habits, and expectations, which were gradually evolving pre-COVID-19, have radically shifted during the pandemic, spurred by the demand for compelling online experiences. While the announcement of COVID-19 vaccine and a potential return to normalcy have lifted the industry sentiments, uncertainty still prevails, and challenges loom large as the industry recovers from recessionary conditions.
Insurers are focusing on accelerating the recovery from the pandemic, while simultaneously focusing on growth and differentiation, in a bid to address the industry stress factors they are facing. Reevaluating key levers of their IT operating model, such as sourcing activity, sourcing location strategies, vendor portfolios, and operational agility, is proving to be the key to executing cost transformation and resiliency for insurance businesses. Added to this, creating pathways for competitive advantage through hyper-focus on data, cloud, platforms, digital solutions, and talent will be essential to enable business model innovation and drive market share gains. Insurers are, therefore, looking to double down on cost and experience transformation simultaneously, to set themselves up for future success.
In this report, to identify Pinnacle performance in talent management in the GICs, Everest Group examined five key capability areas: talent strategy, talent acquisition, talent development, performance management & employee value proposition, and technology; and three key types of outcomes: cost, operational, and strategic by studying talent journeys of 43 GICs that participated in the study.
Scope
In this report we cover:
- Strategies adopted by insurance enterprises to counter the existing industry stress factors
- Implications for insurers to accelerate recovery from the pandemic and execute cost and efficiency transformation
- Technology considerations to execute growth and differentiation for insurers and drive future success