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Overcome three of the most common challenges of delivering change and the importance of having a robust change management process in place.
As we head into a new decade, the London Market is looking at a change revolution. Blueprint One aims to deliver transformational change spearheaded by technology in an attempt to re-establish the London Market as the world’s foremost insurance centre. To do this, market participants are having to re-evaluate their operating models while continuing with business as usual.
The strategy seems to have the support of the insurance sector. However, the amount of work needed to deliver it may overwhelm some, particularly those at the very beginning of their digital journey. This blog addresses three of the most common transformation challenges and how to overcome them. We will also consider the importance of having a reliable and robust change management process in place.
Aligning the London Market’s vision with your own goals and objectives
The first challenge is aligning your goals and objectives to those laid out in Blueprint One. Insurers will already have their own business strategy set out for the next few years. Now they must review them to ensure they will deliver both the company’s and external objectives. The biggest concern is likely to be the cost of introducing new technology to achieve the Lloyd's vision. Having already invested heavily in legacy systems, many will be reluctant to spend more on new technology.
A possible solution is to partner with an InsurTech. This approach is likely to be less risky and more cost-effective than trying to build systems in-house. InsurTechs can bridge the digital knowledge gap insurers may have and provide a faster route to maximising data use.
Identifying what technology to introduce
New technologies are emerging all the time, making it difficult for insurers to pinpoint, which will benefit their businesses and the London Market overall. It’s essential to identify the issues you need to solve, then look for software or systems that will provide solutions. Consider how intuitive the technology is and how long it will take until you see any return on your investment. The technology must improve your customer experience. For example, it may provide faster service thanks to the automation of internal business processes and tasks. Or a quicker claims process because of an online portal which allows stakeholders across the value chain to upload claims documents and information.
Getting your team onboard
Creating a culture of change within the organisation is often the biggest challenge…and likely to be the most difficult of all to overcome. The cultural issues in the London market have been well documented. They must be dealt with if the market is to deliver its promise of building an inclusive and innovative culture. Insurers must also introduce new working practices and systems to staff who are resistant to change and fear the loss of their jobs. To ensure your teams are on board with the changes, you should:
The key to success—introducing a change management process
To ensure the success of your digital transformation, a robust change management process should accompany it. If you get it right, your change management process will be a key enabler for successful change. You should consider change management as soon as you decide you’re going to change your strategy and/or organisational structure. It will help minimise the potential negative impact of the change on your organisation and should emphasize the positive opportunities to employees.
There are several steps you should follow within a change management process that will ensure you deliver your change initiative successfully.
The London Market is entering perhaps the most exciting period in its history. If the vision presented in Blueprint One is realised, both customers and market participants will benefit greatly. If you’d like to find out more about enabling successful change in the London Market, then come along to TINtech London Market 2020. Here you can hear the latest news on Blueprint One's progress and discuss critical issues with your industry peers.