New ways of working and the evolving talent landscape
Embracing the future of work
The insurance talent market
The transformation of the insurance industry, driven by technological advancements and evolving consumer preferences, presents several challenges, including an aging workforce, limited career awareness among younger generations, increased workload, and discrepancies between employees' remote work preferences and company policies. To address these issues, insurance companies must anticipate talent shortages and implement strategies to attract and engage younger professionals.
Fostering a better understanding of growth and development opportunities, the insurance industry can be presented as a more appealing career path for younger generations. Flexible work arrangements and remote work options can help bridge the gap between employees' preferences and companies' current policies.
Addressing the aging workforce: One strategy for transferring essential skills and industry-specific knowledge from experienced professionals to younger generations is to establish mentorship programs. Another approach is to encourage knowledge sharing across different age groups within the organization.
Attracting young professionals: Raising awareness about available opportunities within the insurance sector is crucial for drawing in young professionals. Rebranding the industry and developing targeted marketing campaigns can help spark interest and generate the needed talent.
The impact of artificial intelligence on the workforce
Artificial intelligence (AI) accelerates changes in the workforce, drives disruption, and creates new challenges. Workers may struggle to acquire new skills for AI-driven roles, while concerns about job displacement due to rapidly advancing technologies grow.
Addressing the skills gap: To thrive in an AI-shaped era, companies must invest in upskilling and reskilling programs to help employees develop the necessary capabilities for the ever-evolving workplace.
Easing job displacement concerns: Companies can alleviate workers' fears of becoming outdated due to technology by implementing robust support and training programs. Ensuring employees can embrace AI's potential benefits in their jobs will help ease concerns about obsolescence.
The evolving role of managers: Balancing support and accountability
In the rapidly changing landscape shaped by AI, the role of managers becomes even more critical. They hold the key to fostering a proactive culture of skill development, change management, and continuous learning, all while striking a balance between providing support and ensuring accountability.
Managers must adapt to new ways of handling change and focus on nurturing employees' growth, fostering substantive connections, and creating an environment that encourages innovation and collaboration. Through their central role, managers can ensure the successful integration of AI and positively impact the workforce transformation process.
AI and the future of work
Integrating AI into the workplace comes in various forms, beginning with job enhancement, where AI tools serve as copilots driving improved productivity. This process extends to current roles, expanding their scope, and even leads to the creation of entirely new positions. Successfully adapting to this technological transformation requires a seamless approach that focuses on identifying and analyzing the roles and technologies involved. This approach actively engages employees in reshaping their roles and adapting organizational structures, resulting in the swift expansion and continuous refinement of developed capabilities.
From job augmentation to expanded roles: AI strategies can involve different scenarios, such as job augmentation, where AI tools support workers, and expanded roles where employees take on additional tasks and acquire new skills. Companies must develop a multifaceted approach to AI adoption that accommodates the varying needs and skill sets of their workforce.
We are already seeing the augmentation of roles through AI, and in the near future, we can expect to see expanded roles and even the creation of entirely new roles that don't yet exist today.
Evan Metter
Principal, Advisory, KPMG US
Navigating change management in the age of AI
As AI continues to transform industries at an unprecedented pace, navigating change management and talent development strategies within the insurance industry is essential now more than ever.
The change management machine metaphor that equates an organization to a machine that requires fixing only when there is a breakdown or malfunction no longer applies. Maintaining a competitive edge in the age of AI means addressing tough issues, securing leadership commitment, and continuously reassessing and adapting. By fostering a smooth transition alongside up-to-date AI strategies, change management can lead to improved business outcomes.
Adopting a skills-based approach to workforce development and effective change management techniques enable companies to adapt to technological advancements and excel in the face of disruption. Insurance organizations prioritizing talent management and championing organizational change are thus better positioned to succeed in a dynamic business environment and maintain their competitive advantage.
This information was originally presented at the KPMG 35th Annual Insurance Industry Conference.
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