
Building a more innovative, inclusive Insurance sector which respects and listens to diverse perspectives, whilst also navigating the proliferation of generative AI, creates a complex landscape for those seeking to shape and lead the sector. Unsurprisingly these topics dominate both industry events (such as #DiveIn, #Shaping the Future, #ABI), and board room discussions and increasingly these conversations are being mirrored throughout all levels within organisations.
The common factor we have observed is the critical importance of speaking up and listening up to navigate this future landscape. Culture is front and centre of the agenda, as reinforced in 2019 when the PRA wrote to General Insurance leaders encouraging them to address working cultures1. However, this needs to be about more than just addressing ‘bad’ behaviour and needs to start looking at the opportunities such cultural change can provide. Here we look at the some of the opportunities AI, ESG, Purpose and DEI provide to the sector, and the importance of speaking up and listening up to enable these to support healthy cultures.
- AI promises efficiency and simplified technology infrastructure- but requires reshaping talent, workforce and risk attitudes
• Integrating AI into business operations requires a significant focus on the human element to enables it to be deployed successfully
• Creating a culture of courage, innovation and a continuous change mindset is a key enabler of organisational excellence
• Speaking up and listening up is critical to innovation and change as it enables employees to openly share ideas and concerns without the fear of repercussions2 - Environmental, Social, and Governance (ESG) and Purpose-led Insurance is reshaping the sector
• At all levels leaders are being challenged to address sustainability concerns and responding to growing client demands for ESG-focused policies and products
• Speaking up and listening up enables a two-way conversation allowing employees to explore their personal and organisational purpose and align these to business and personal benefit, as companies with a clear ‘activated purpose’ report increased growth, innovation and 66% of consumers would swap to a company with a clearer purpose3 - Diversity, Equity & Inclusion (DE&I) enables all voices to be heard and for breadth and depth of experience to be valued
• Addressing historical inequities, and leaders fostering an inclusive culture where diverse voices are not only encouraged to speak up but are also ‘heard’ is key, This requires investment in leadership- rather than placing all expectations on more junior resources
• Recognising and accommodating individuals with different cognitive abilities, providing them with opportunities to thrive in the workplace will also strengthen the sector and builds its long term resilience4
• Supporting career diversity and squiggly development5 where traditional expertise is valued alongside broader skillsets and mindsets, may be counter cultural right now but could be the key to unlocking the appreciation of broader perspectives
In conclusion, the transformation of the insurance industry requires a different type of leader. One that enables innovation to thrive, fosters openness, inclusivity, and actively invites new and different voices. This will create a culture that enables continuous improvement, innovation and sustained long-term success. By nurturing courage, embracing vulnerability, fostering psychological safety, and championing diversity, leaders can navigate the evolving landscape with confidence and foster cultures that do a lot more than just address bad behaviour.
Interested to hear more? At WhartonBC we support those within the Insurance sector and beyond rethink their culture, leadership and conduct risk approaches- come to speak to us here
1 Solve culture crisis or face sanctions, insurers told | Latest News | Insurance Times
2 Speak Up; Listen Up, Megan Reitz & John Higgins 2019
3 How Executive Teams Shape a Company’s Purpose (hbr.org)
4 Vic Mazonas, GAIN (Group for Autism, Insurance Investment and Neurodiversity) at DiveIn 2023
5 We’ll just come out and say it; the current career deal needs to be radically re-thought – Wharton Business Consulting (whartonbc.co.uk)
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