Change management was recently revealed as the biggest risk facing the insurance industry in New Zealand by
PwC.
The PwC report found that New Zealand ranks around the bottom quartile of the countries analysed in the global survey in terms of its preparedness for its biggest risks and stated there was a need for insurers to “transform their core operations and build a customer-centric value proposition” – but is the industry responding?
Karl Deutschle, PwC partner and insurance sector leader, explained that there are different aspects to change management but its relation to technology in particular cannot be ignored.
“Insurers see technology as a threat and opportunity but they can’t achieve [those opportunities] by standing still, they need change,” Deutschle told Insurance Business.
“Right around the world, insurers are seeing more disruption and change than pretty much any other sector out there. They are conscious of the need for change but perhaps are worrying about how they are going to achieve that.”
Deutschle noted that the industry has long thrived on its collection of data and now, with the advent of new technology, analysis of that data will allow the industry to ensure that it changes and develops its products, distribution channels and underwriting techniques to match customer need.
“There are a lot of benefits, but with those benefits there is a need for change,” Deutschle continued.
The report noted that the lack of preparedness among New Zealand businesses could be seen as the local industry taking a thorough and realistic approach as it grasps an understanding of the mammoth task ahead.
However, one thing is for certain: “Change favours the prepared mind, so what is your business doing to prepare itself?”
Related stories:
Insurance: lessons to learn from banking
PwC reveals biggest risks for insurance industry
.jpg)
