London market needs to invest in workforce to see digital transformation thrive

The insurance workforce needs to evolve to work effectively with new technologies as the London market embraces modernisation and transformation initiatives, suggests a new report by PwC and the Lloyd's Market Association (LMA).

According to the report, technological advancements in the coming years will have the greatest impact within the claims function. Processes will become more efficient through automation, with the streamlining of workflow and the removal of unnecessary manual tasks, freeing up the workforce to focus on value-adding tasks, for which they will require new skillsets to deliver.

PwC and the LMA believe that preparing the workforce for those changes needs to begin now. London market needs to focus on its claims workforce so that the people within it have the relevant skills and talent to make best use of the new technologies.

"For any transformation to be meaningful there needs to be a shift in culture and approach not just within individual carriers, but also at market level," the report said.

It said that while the challenges in transforming the way technology is used are being recognised, there is a lack of focus on the transformation that is needed in the workforce and processes.

“The evolution of the claims process will result in an increase in the need for data analytics and customer focused skillsets and roles, with a decrease in the need for low value-add activities. To maximise the opportunity that the market has, a significant level of investment in the upskilling of the workforce needs to be made," said Michael G Cook, UK claims advisory leader and partner at PwC.

"While it is right the market focuses on updating its technology, we need to be careful not to lose what makes the market unique: the people. PwC and the LMA believe that more focus is needed to transform the workforce and processes if employees are to work effectively in the future claims landscape."

Cook added: “Technical claims knowledge will be needed to help customers shape their loss mitigation and prevention strategies. Whether a risk manager of a global corporate, or an end consumer, customer expectations are high, with all customers expecting the level of service that they would get from other
non-insurance products e.g. online banking, booking travel and purchasing goods.

"Against this backdrop of modernisation, claims managers and directors will need to develop the skills and strategies to manage change. The best insurers will become bionic, with technology and the workforce working in tandem to deliver best in class outcomes for the business and customers alike.”