What's Happening?
Info-Tech Research Group has released a report highlighting the challenges faced by the insurance industry in modernizing its core systems due to workforce strategy shortcomings. The report, titled 'Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance,'
outlines a framework for insurers to assess talent readiness and strengthen their employee value proposition (EVP). The industry is struggling to attract and retain critical digital skills, such as cloud, data, AI, and cybersecurity expertise, while also facing the retirement of legacy system experts. These challenges are compounded by rigid work models and unclear growth pathways, which hinder transformation efforts.
Why It's Important?
The insurance industry's ability to modernize is crucial for maintaining competitiveness and meeting evolving customer expectations. Workforce strategy gaps pose a significant risk to transformation timelines, potentially increasing operational risks and reliance on external partners. By addressing these challenges, insurers can better retain institutional knowledge, attract new capabilities, and ensure a successful digital transformation. Strengthening the EVP to align with modern workforce expectations is essential for attracting and retaining talent, ultimately supporting the industry's long-term growth and resilience.
What's Next?
Insurers are encouraged to implement Info-Tech's three-phase framework to rebuild their talent engine. This involves assessing talent readiness, embedding a modern EVP, and presenting measurable impacts on retention and engagement. By doing so, insurers can mitigate workforce-related risks and accelerate their modernization efforts. The report emphasizes the strategic importance of a modern EVP as a key enabler of transformation success, urging insurers to prioritize workforce strategies in their digital transformation plans.
