LIMRA and BCG Release Latest Survey Results Showing Shift in CEO Priorities
Change management has become the most important challenge in the minds of C-suite executives in the global life insurance industry, followed closely by the need to improve customer experience. Results from the new biennial global survey of C-suite life insurance executives finds a shift in priorities as economic, technological, regulatory and consumer changes press life insurance companies to reassess their business model.
The study, conducted by LIMRA and Boston Consulting Group (BCG), surveyed more than 500 C-suite life insurance executives, nearly one-fifth of them CEOs or presidents, across 62 countries to identify their greatest challenges and the biggest external forces affecting their business and their priorities for the future.
Change management emerges the greatest internal challenge facing life insurance executives as they work to help their organizations keep pace with and adapt to a rapidly evolving business environment. The study finds one-third of executives cite change management as their greatest challenge. This is a significant shift from prior studies in 2015 and 2017, when executives cited talent management as their biggest challenge (Chart 1).
“In today’s business environment, executives are realizing that having the right talent is not enough to address the external forces transforming the business landscape,” said Alison Salka, Ph.D., senior vice president and director of LIMRA Research. “To transform their entire organizations, executives must cultivate corporate cultures that not only fully embrace change, but can also sustain it over the long term.”
Part of this need to better manage the change in their organization is the recognition that life insurance companies need to improve their customer experience. Nearly a quarter of executives said this was a top challenge for their company. As leading companies embrace advanced IT and data capabilities to analyze customer behavior, cross-sell and customize products, other companies appreciate the need to invest in these technologies to compete for consumers’ attention.
“Life insurance executives have long been aware they need to change their organizations and deploy new digital technologies to improve customer experience, become more efficient, and develop products that are more tailored to individual needs,” said Tim Calvert, managing director and partner and global leader of BCG’s Life Insurance practice. “Our research indicates that they are now ready to do something about it.”
Serving the industry since 1916, LIMRA helps to advance the financial services industry by empowering nearly 600 financial services companies in 64 countries with knowledge, insights, connections and solutions
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact.