How insurers should make sure they don't get left behind in the digital age
Insurers can't rely on self-taught staff any longer, they need to employ experts in the digital field, says RSA's Ian Hood
The first time I joined the web team of an insurer was at the turn of the millennium. Google had only just launched a couple of years before and this was a transformational time for the industry as it turned the internet into the main distribution channel for many insurance businesses, at least in the Personal Lines space.
Fast forward 15 years and technology hasn't just transformed insurance but is now set to revolutionise it with driverless cars, connected homes, wearable technology and the much-hyped Internet of Things no longer being flights of science fiction fancy. With technology playing an ever more prominent role in our customers' lives, we all need to step up to the challenge of providing products, services and experiences that are tailored for today and indeed tomorrow's digital customers.
Investing in the latest technology is the easy part. Getting the right people, processes and culture is a bit more difficult but I would also argue more important.
Ten years ago, the average person working in the online sector in insurance came from a Claims, Operations or Underwriting background, had little experience in technology or the web but found the topic interesting so outside of work learnt more about it and self-taught.
After all, web and digital didn't really exist in mainstream consumerism back then. A team of enthusiastic amateurs might have been fine when it only accounted for five or 10 per cent of company sales but it's not anymore.
Now, insurers need experts in this field - people who studied a digital specialism such as web analytics, user experience (UX), technology or digital marketing at university or college and who also gained hands-on experience including that acquired outside of the insurance industry. People from these backgrounds are creative, innovative, naturally inquisitive and, most importantly, keep pace with consumer and technology changes because they live and breathe this world - it's a hobby as well as a job. Combine all of this together and you have an employee who will create innovative products and services, find new ways of working that make it easier for customers to do business with insurers and ultimately help the company outperform: the 21st century employee.
The pace of change is relentless and creating teams made from a mix of people born in the digital age as well as those who have adapted to it is crucial in ensuring that our industry is able to meet the ever-increasing and demanding expectations of our customers. Anyone not thinking of building a critical mass of 21st century employees runs the risk of getting stuck in the dark ages.