As the industry accelerates technology innovation, driven by advancements in artificial intelligence (AI), big data and automation, insurance firms are seeking tech-forward entrants to lead the transformation. 

But when advertising the industry to new talent, insurers should tread carefully when positioning themselves as akin to tech firms, experts at Reuters’ Future of Insurance Conference said on Friday.

Although there are undoubtedly lucrative opportunities in insurance for tech-forward thinkers, AI experts, or data science candidates, “I think it would be misrepresentative of the industry if we said we are 100% a tech firm,” says Maryann Besharat, vice president of claims at Intact. “Insurance companies, whether it’s in life or P&C, they’re highly regulated.

“It’s meant to protect Canadians and the financial sector,” she says. Talent outreach must therefore be balanced in its advertising.

Financial regulators have been creating “sandbox” environments to allow companies to test and pilot innovative ideas, says Besharat. That allows insurers to remain competitive in the search for talent, not just within the industry but also outside it.  

But when advertising tech capabilities to prospective talent, insurers must stay true to their business pillars, says Brady Aarssen, vice president of operations, strategy and transformation at Canada Life. 

“I think there’s a danger in almost unseating your purpose when you try to position yourself as something else,” he says. “You want to stay proud of who you are as an insurer [and your role in the] ecosystem of delivering on these promises and protecting people. 

“At the core, what is the insurance business here for? It’s an intangible product that makes promises to people that they need to deliver on,” he says. “That’s the fundamental of what we do, so I wouldn’t want to get away from that too much.” 

That said, attracting certain tech skillsets hinges on a company’s ability to differentiate itself. Sometimes that means promoting superior digital capabilities. Just stay within your lane, and don’t put your company out there as something it’s not, panellists advised.  

“Be strategic about how you are going to build a value proposition that differentiates, [yet] stays true to that promise, commitment and culture that is insurance,” Aarssen says.  

For example, the open-source nature of many Gen AI tools means in-house AI tools are no longer a differentiator for insurers. So, instead of building Gen AI tools in-house, it may be more strategic to outsource certain functions and save manpower for other digital or tech innovations. 

“[Gen AI] will enable differentiation because it creates capacity in your organization to differentiate,” Aarssen says. “But it is not, in and of itself, a differentiator.

“That might require you to outsource some of these things, rather than attract them, because you don’t need to build your own Gen AI. In fact, that could be quite dangerous, given the rapid speed and dynamic quality of it.” 

 

Feature image by iStock.com/metamorworks