Insurers must prepare for talent issues, tech ‘megatrends’

Insurance companies may not be prepared for several “megatrends” that will become more crucial in the next five years, including changes sprouting from social media and talent issues, according to a new report from Towers Watson.

In a survey of about 500 insurance experts globally, capital management, regulatory issues and a “volatile economic environment,” ranked as the top trends that will have a significant impact over the next two years, and over the next five years.

While insurance professionals indicated confidence in dealing with capital management issues, they were less prepared for the rise of social media, big data and talent issues, according to Towers Watson.

“Talent attraction and retention generally ranks comparatively low as a concern among survey respondents,” the report notes.

But insurers should be giving more thought to this important trend, the firm says.

“The case can be made that talent needs will change significantly in the coming years,” the report says

“Not only will companies need new talent in the area of social media, but even actuarial positions will evolve as actuaries take on new, more strategic responsibilities and with the potential impact of ‘actuarial industrialization,’ which will demand actuaries with skill sets that are much more linked to information technology.”

The insurance industry as a whole will also be competing with other industries to attract talent, Towers Watson notes.

Insurers will also need to put more emphasis on exploiting big data trends for larger uses, the report suggests.

“…The challenge for some insurers may go beyond internal data mining to the collection of information that might better aid product development and pricing,” it says, noting the fast growth of usage-based auto insurance as one example of data’s impact.