Insurance is in the midst of massive changes that began in earnest following the 2008 economic crisis. Carriers no longer can afford to lose money on providing insurance. They must make an underwriting profit. Investment yields can’t make up the difference, and many insurance leaders recognize the large-scale and transformative change this requires. Executive SummaryInsurers are competing with numerous other industries for talent—particularly data and analytics talent—and we need many more young people to graduate with science, technology, engineering and mathematics degrees. Valen Analytics CEO Dax Craig and Change the Equation CEO Linda Rosen review short- and long-term initiatives taking shape to fill the skills gap.
Competition from other carriers is heating up and becoming much more sophisticated. Also, since insurance has fallen behind in delivering the customer experience today’s consumers expect, the tech giants and e-commerce companies are preparing to make their mark on insurance. From Google and Facebook to online retailers like Walmart and Overstock.com, the technology revolution is swirling around insurance as one of the last major industries that has yet to be modernized.