Ability to attract and retain human talent is a fast-rising concern for the insurance industry which is likely to see a heightened activity on mergers, acquisitions and new entries with disruptive strategies, according to a report. Change management and governance in companies are going to dominate the discourse in the insurance industry in future, said the report titled `Insurance Banana Skins 2017′. The report is based on a survey conducted by the Centre for the Study of Financial Innovation (CSFI) with support from PwC.
According to the report, quality of management and governance in insurance companies are some of the other issues which are going to dominate the insurance industry. The report said the industry’s ability to attract and retain human talent is a fast-rising concern. In fact, insurers from India rated human talent as the top risk. The dearth of skilled workers like actuaries and cyber risk experts needs to be addressed differently, it said. “The insurance industry, though settled at business, is going to see a heightened activity on mergers, acquisitions and new entries with disruptive strategies,” Joydeep K Roy, PwC India Insurance Leader, said.
“Talent will continue to be at a premium. Dependence on technology, in its next phase, will see robotic automation and increased digitalization of processes,” he added. The survey was conducted with 836 insurance practitioners and industry observers in 52 countries, to find out where they saw the greatest risks over the next 2-3 years. Availability of human talent, as per the report, was ranked as the top risk. This was a very powerful message, and one which was matched by no other respondent country of comparable importance.
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When compared to the rest of the world, India’s level of concern about the challenge of technological change, and associated risks such as cyber was several points lower, the report said. This was, the report said, also the case with other issues in the operating environment such as the state of the macro-economy and interest rates, as well as the pressures of new regulation where India seemed more relaxed.