But some elements of the environment are new. Interest rates have once again been rising, creating complexity in an uncertain economic environment, and generative artificial intelligence (AI) powered by large language models (LLMs) offers a powerful new set of tools that may give insurers truly new ways to solve problems, do business, and satisfy customer needs.  

In 2024, Datos Insights anticipates that insurers will continue their investment in IT and modernization efforts, while also taking advantage of new generative AI tools and API ecosystems to improve operational efficiencies, increase revenue, and enhance customer experience. 

Here are some of the top trends Datos Insights sees impacting the L/A/B space in 2024: 

• Distribution holds the power: To manage the challenges posed by the distribution power shift, carriers need to reinvent their partnerships with distribution intermediaries by establishing more trust and collaboration, providing support and training, and creating a more digital experience for agents. 
• AI is live!: Generative AI holds the promise of allowing the L/A/B segment to catch up by impacting the areas of customer service, claims, account setup, and coding and testing.   
• Customers and agents want the easy button: By providing the easy button that customers and agents want, life insurance carriers can not only overcome their challenges, but also create a competitive advantage by becoming the carrier of choice for agents and customers. 
• Institutional knowledge is leaving the building: The talent gap in the life insurance industry is a serious challenge that requires carriers to transform their technology and proactively share the purposeful mission of insurance for its future success. 
• APIs continue to provide value: With the growing number of insuretechs focusing on the L/A/B space, carriers will continue using APIs for a variety of use cases, including connecting legacy systems to new solutions, collecting information from IoT devices, and integrating with electronic health records. 

To hear about the rest of the top 10 trends Datos Insights foresees impacting the L/A/B market in 2024, register for our webinar on January 11: Top 10 Trends in Life Insurance, Annuities, Benefits, 2024: New Tools and Opportunities, Ongoing Challenges, and Concerns. If you are unable to attend, read about these areas of the industry in our report Top 10 Trends in Life, Annuities, and Benefits, 2024.  

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I hosted the most recent Datos Insights Women’s Network virtual meeting on the topic of navigating politics. Our panel included Amy Aluyi (Director of Strategic Portfolio Management at Pekin Insurance), Darchelle Caces (Senior Director, Project Management at Trustmark), and Martina Conlon (Head of Insurance at Datos Insights). In our discussion, we explored why navigating office politics is a necessity, the specific challenges women often face in this arena, strategies for effectively handling office politics, and how to keep politics from derailing productivity and collaboration. 

Why We Must Navigate Politics 

“I think the negative connotation with politics comes from when you have people who are truly playing games and perhaps don’t have the best intentions in terms of what’s best for the organization,” shared one of our panelists. The perception of politics as a dirty game is rooted in instances where individuals prioritize personal gain over the well-being of the organization. However, it’s essential to distinguish between harmful political maneuvering and the need to build and strengthen workplace relationships.  

Navigating office politics is a necessity; in organizations, both small and large, politics exist to varying degrees. Even in tightly-knit teams, one cannot entirely cocoon themselves from the broader organizational dynamics. Building the right relationships and fostering collaboration are vital aspects of navigating office politics. 

Creating Relationships to Unite, Not Divide 

Building relationships beyond your immediate team is crucial for success and influence within the organization. Rather than viewing politics as divisive, we should approach it as a tool for bringing people together. Instead of taking sides and fostering conflict, we should strive to unite individuals within the organization. Building bridges between teams and departments can lead to more effective communication, problem-solving, and decision-making. 

Challenges Women Face in Office Politics 

Women often face unique challenges in navigating office politics. They are sometimes penalized for displaying political skill and judged more harshly for being assertive or competitive. This bias can hinder women’s career progression and perpetuate gender inequalities in the workplace. 

One panelist shared an anecdote about a female leader in their organization who, despite her succinct and objective approach, faced skepticism and doubts about her motives. Men and women need to recognize and challenge these biases, ensuring that strong female leaders are not labeled as “aggressive” for their assertiveness. 

Strategies for Navigating Office Politics 

Effectively navigating office politics requires a strategic approach. Here are some key strategies to consider: 

• Building credibility and influence: Talk about your accomplishments to build your credibility and influence within the organization. Tie your accomplishments and goals to the goals of the company and encourage your teams to do the same. This helps connect them to the purpose of the company and provides more satisfaction. 

• Networking: Actively engage in networking both on and off the job. Schedule one-on-one meetings with stakeholders and approach these interactions with a clear agenda for aligning goals and outcomes. 
• Confidence and authenticity: Be confident and authentic in your interactions. Authenticity enhances confidence and helps build trust with colleagues. 
• Transparency: Avoid engaging in gossip or “the meeting after the meeting.” If you have an issue with someone, address it directly rather than discussing it with others. 
• Avoid internal competition: Focus on competing with external competitors rather than colleagues within the organization.  

Conclusion 

Navigating office politics is an essential skill in today’s workplace, regardless of gender. While it can be challenging, adopting a strategic and ethical approach can help you build positive relationships, influence outcomes, and contribute to the success of your organization. By recognizing the challenges women face, supporting one another, and promoting authenticity, we can create a more inclusive and effective work environment where office politics serve as a means to unite, not divide. 

Our next Datos Insights Women’s Network virtual meeting will take place on October 25th at 10 a.m. ET on the topic of Rethinking AI in Insurance, led by Datos Insights Head of Insurance Martina Conlon. Register here to join us. 

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1. Focus on the end goal.

Coworkers and teammates are working toward the best conclusion of a project or the shared success of the organization overall. Focusing on that shared goal removes the idea of winners or losers, keeps the emotions out of it, and helps keep the conversation on track. Conflict can be uncomfortable, but it can also bring up different ideas and perspectives if the conversation stays productive.

One of our panelists shared, “I try to take a moment before I go into a meeting where I think there might be some conflict. I write down my ultimate goal, what I need from this conversation, so when conflicts arise, I can take my emotions out of it and focus on the goal.” Another panelist shared that she has a Post-it on her laptop that says, “Why?” to remind her to think about the intention behind what she says.

2. Timely communication is key.

Handling conflict is not simply about confronting it head on, but also about the timing. A difficult conversation can have a very different outcome depending on the timing and how ready each person is to receive the information. Some conflict is better handled in a private conversation rather than in a public forum, and individuals will tend to react more openly and honestly one on one rather than in a group setting.

One of our panelists gave a tip for how to handle a situation where a coworker is trying to bring up a conflict in a group setting: “My boss wanted to resolve an issue in front of my team. I said, ‘I am not going to have that conversation right now, I am not prepared, we can discuss that later.’ Someone that worked for me said they had never seen that before.” This is a great suggestion for diffusing the conflict in the moment and moving the discussion to a private setting.

3. Confronting conflict as a woman can be viewed negatively.

Women who choose to confront conflict in the workplace can be characterized more negatively than their male coworkers. When men are dealing with conflict, they are generally viewed as strong, while women are more likely to be viewed as emotional. Being measured in your responses, focusing on what the team is trying to achieve, and being open to input and different perspectives can be helpful ways to approach conflict in the workplace.

There has been some improvement when it comes to the perception of women in the workplace. One of our panelists shared that she was once given feedback that she needed to “confront conflict a little more thoughtfully”. This interaction occurred in her early career, and she feels that she doesn’t receive the same attitude she used to encounter decades ago where women were viewed as emotional for confronting conflict.

Our next Aite-Novarica Women’s Network virtual meeting, titled “You’ve Come a Long Way…Maybe,” will take place on June 28th at 2pm ET. We will be discussing some stats about the progress women have made in the industry broadly. This will be an open meeting and is open to women at insurance carriers, both Women’s Network members and non-members. Register to join us here.

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In addition, the American gender wage gap has steadily hovered around 80% for two decades. The average American woman earns 82 cents to the dollar a man earns, no matter her level of education. While pay disparity for Asian American women has improved during that time, it remains steeper for Black and Hispanic women, who earn an average of 70% and 65%, respectively, of what their white male counterparts earn. While narrowing the pay gap worldwide could add an estimated US$7 trillion to the global economy, experts think it could take over 100 years to reach parity.

With all of these hurdles in her way, how can any woman carve out a fulfilling career for herself while also having a life outside of work? This is a question the Aite-Novarica Women’s Network works to solve monthly.

On February 28th, I jointly hosted our latest meeting with fellow Senior Principal Carey Geaglone on the topic of having a career and having a life. We were joined by Erin Selfe (VP of IT, PA Lumbermens), Bonnie Wasgatt (Former CAO, F&G), and Kimberly Wilson (AVP, MetLife), who shared their perspectives on maintaining work-life balance.

Here are the key takeaways from our discussion:

1. Define What Work-Life Balance Means to You

Maintaining a healthy work-life balance involves learning how to best meet your own needs while maintaining a fulfilling career. This balance is less about splitting your days evenly between your work and personal life; it’s about having the flexibility to get work done while still having time and energy to enjoy your life.

Our panelists noted that learning how to set boundaries and non-negotiables at work can help you manage expectations and set you up for success in both your personal and professional life. All agreed that in their experience, managers can be very accommodating to changing personal and professional needs. Having open and transparent discussions with your leadership about boundaries can help maintain expectations as you move through your career.

2. Learn How to Ask for Help

According to the Harvard Business Review, women and people of color often face greater work-life balance challenges, but asking for workplace flexibility can often jeopardize their career prospects. Learning how to ask for help can not only give you more time to focus on what’s important to you, but it can also be a great opportunity for others to learn and grow. Leadership involves delegating, coaching, and providing new opportunities to others while still taking responsibility for the outcome.

All of our panelists agreed that while asking for help can be difficult, doing so is a key factor in achieving work-life balance. One panelist noted that a critical thing she learned was to let go of the need for everything to be perfect. When accepting help, it’s important to learn to let people help to their standards, not necessarily to yours. Learning to separate the things you need to do from those that can be tasked to others can prevent an imbalance between your work and personal life.

3. Role Models Come in Many Forms

As you move through your career, sometimes the negative experiences can be just as impactful as the positive ones. This is especially true as you advance to more senior roles. Learning how you don’t want to be can shape you as much as finding aspirational leaders can. One panelist mentioned that she frequently learned from others and their experiences how she wanted to handle situations as they arose.

Our next Aite-Novarica Women’s Network virtual meeting will take place on March 29th at 11am ET, on the topic of “Mentoring in Insurance” led by Aite-Novarica Group Senior Principal Deb Zawisza. More information is available here.

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Retail, banking, and airlines have set a high bar for the capabilities and transparency within transactions that make up a great customer experience. The pandemic accelerated the need for digital capabilities across lower-transaction-volume businesses like insurance. Some carriers quickly provided capabilities to meet these needs during a difficult time and are now catching up by improving the experience for customers and agents. Consumers now expect to have access to their carriers where, when, and how they want it.

It really is all about the experience—or is it? The answer lies in what is considered to be “the experience.” A great user interface that provides intuitive capabilities and information is a wonderful thing to provide to agents and customers. But if the underlying data and administration systems do not provide the ability to expose impactful data and functionality, that will diminish the value of the experience.

If manual processes need to happen to allow for the correct policy issuance or for changes to be applied, that also impacts the experience. The end-to-end experience must work, or at least appear to work, like a well-oiled machine.

There is no doubt that investing in the insurance customer and agent experience is important. Making sure that investment will yield real value is even more important. Modern core systems and data integrity play a huge role in delivering a superior customer experience. While many carriers choose to build user interfaces around their legacy systems, there are often limits to what that veneer can provide.

Some legacy systems provide highly automated processes that can be exposed through a well-designed front end. Some have major gaps or manual steps that carriers do not want to expose to their customers or agents. It is important for carriers to identify the real business problem they are trying to solve for to make sure the investment and solution will be beneficial.

Lightning-fast issue or claim adjudication times are great, too, but is that the most important thing? Maybe not. Transactions cannot take an inordinate amount of time, or customers and agents will be disheartened. What really matters is the level of transparency into the transaction. Allowing agents and customers to understand the status of their application or claim gives them the ability to better understand the process and not feel like their needs went into a black hole.

If carriers provide a slick interface but still do not have data that can provide insight into the status of a claim, they are not addressing the problem and are not understanding the customer’s experience.

It’s all about “the experience” means the entire experience. Providing access to insightful data and capabilities in a manner that is convenient and desired goes deeper than a pretty web interface. For carriers, looking at the way you deliver services to your agents and customers from their perspectives will help you better identify problems and opportunities and then develop strategies that hit the mark.

Interested in how else insurers are improving their customer experience and tackling other key areas of focus in 2023? Read the full report Top 10 Trends in Life, Annuities, & Benefits, 2023: Preparing for a Dynamic and Variable New Reality or watch the recording of our February 21 webinar on the trends here.

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In our discussion, we summarized new Aite-Novarica Group research on insurers’ IT priorities for the coming year, developments in the insuretech ecosystem, and overall trends in the industry for both P/C and L/A/B carriers. To read these research reports in full, visit our website. Here are the key takeaways from our meeting.

Insurer IT Budgets and Priorities for 2023

Insurers anticipate slightly higher IT spending for 2023, but much of this increase is driven by rising staff and services costs. P/C insurers are prioritizing analytics and insights, distributor support, and ongoing transformation projects. By far, the highest priority projects for large P/C carriers are core PAS replacements, with most activity in ongoing replacement projects.

L/A/B insurers are continuing to prioritize strategic technology efforts while increasing their focus on cost and risk control. Digital capabilities are their top priority, which has been consistent year over year in the life space. The pandemic showed the need for digital capabilities, not just for consumers but for agents who remain a key part in the relationship with the consumer.

Both P/C and L/A/B insurers identified talent attraction and retention as anticipated challenges for the year. Speed to market is also a top priority, given the market changes and shifts influenced by the pandemic and economics.

The New Insurance Ecosystem

The explosion of insuretech solutions in the last five years has made it complicated for insurers to navigate the broad range of solutions. Point solutions that provide a variety of features and functions across the entire insurance value chain are extending core systems and redefining the insurance system landscape. It’s important for insurers to determine where they want to make investments and what will help them meet their business goals. Aite-Novarica Group’s new insurer ecosystem framework can help demystify the landscape and provide insurers with a framework for assessing ecosystem capabilities to meet business and technology goals.

Top 10 Trends in Insurance for 2023

Our panelists wrapped up the discussion by providing a brief overview of the top 10 trends for both P/C and L/A/B insurers for 2023. A key trend across insurers for 2023 will center around talent attraction and retention, with particular focus on institutional knowledge transfer. We anticipate many P/C insurers will increase investment in IT to implement new technologies that improve operational efficiencies, increase revenue, and enhance customer experience. L/A/B insurers this year will focus on improving customer engagement and building strong relationships, making it easy for distribution partners to do business, and lowering operating costs.

Our next Aite-Novarica Women’s Network virtual meeting, titled “Having a Career and Having a Life,”  will take place on February 28th at 2 pm ET and be led by Aite-Novarica Group Senior Principals Nancy Casbarro and Carey Geaglone. More information is available here.

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I have written before about the lack of a long-term contract between employers and employees and the lack of trust that creates. The guarantee of a career in one company and the reciprocal loyalty that people have for their company is very much a phenomenon of the past.

Changes in the workplace now are happening faster and are even more impactful to both employer and employee. Employers are looking for solid talent that will stay with the company long enough to be impactful in a very competitive environment. Employees are looking for good salary, benefits, flexibility, and a purpose.

What Younger Talent Is Seeking

As we look at how these trends impact a newer generation of talent, we can gain better insights into what they are looking for in a career. They do not have a long-term career guarantee with a company, so the relationship defaults to being more transactional for them. Many have witnessed downsizing and layoffs take a heavy toll on their parents after long and devoted careers to one company and do not want to repeat that pattern.

Younger talent still wants competitive pay, interesting work, and an opportunity to learn and grow, but they do want a connection with the company they work at. They demand to have purpose in their work and feel that their company has a mission they can identify with. That is the connection they look for with their employer.

How does the insurance industry fare with younger talent and connecting with them on their mission and purpose? Not well, unfortunately. That is not because they don’t have a purpose. It is because the insurance industry does not have a great reputation in popular culture. Making the insurance company look like the villain is very mainstream.

Insurance Should Promote Its Mission

Almost all companies are in business to make a profit, but most of them have causes that are important to them and their employees. Insurance companies also have causes they support, but they fail to promote the most basic tenet of their existence to their employees and potential employees: They help people. 

While that might sound corny, it’s true. The purpose of insurance is to manage the risk of terrible things that can happen. Add people to that equation who help policyholders in their worst times, and you have a very caring and compassionate industry.

I have been in the insurance industry for decades and have worked with some of the most dedicated, caring, and customer-focused people who truly do care about the policyholder and put them first. Whether it is rebuilding a home or a community after a disaster, enabling people to have dignity in their final days through long-term care, or helping a parent continue to provide a secure life for their children after the loss of a spouse, insurance plays a critical role.  

Helping people is at the heart of what insurance does. Insurance enables people to rebound from catastrophic events, providing a safety net that no one wants to use but that makes everyone feel more comfortable by being there. 

As we begin 2023, there are many unknowns about the economy and how that impacts recruiting talent. It would be helpful if our industry better communicated how insurance can have a significant impact on a person, family, or community when they are most in need. Meeting the needs of our community and helping them to prosper is a purpose I can identify with. I think it would be a purpose that talent of all generations could identify with, too.

To learn more about how insurers and the financial services sector are dealing with talent attraction and retention issues, read Aite-Novarica Group’s report The Great Resignation and Resulting Talent Gap or reach out to me at ncasbarro@datos-insights.com.

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1. The insuretech landscape is expanding.

There are an increasing number of insuretech startups in the market with a wide variety of capabilities that insurers can take advantage of. While it can be overwhelming to choose from the many different startup options, keep business goals at the center of your assessment. New technology can be enticing, so be clear on the business problem you want to solve with technology rather than adopting technology first and then looking for a problem it can address.

Our panelists highlighted the ways in which the insuretech landscape has changed, particularly noting how many capabilities are becoming more commonplace to insurers and have completed the transition from novel to normal. One panelist mentioned that just a few years ago, organizations were nervous to transition to the cloud, whereas now it’s a standard practice.

2. Innovation is becoming a normal part of operations.

While creating cultural change is often difficult to achieve, some organizations are seeing a cultural shift toward innovation. The shift to incorporating innovation into each function rather than housing it as a separate department highlights the potential for maturity of innovation at insurers. While innovation has been top of mind for carriers for a while, it is happening in different ways than we’ve seen previously.

3. Find insuretech solutions that have measurable impact on your business.

The best innovative solutions are those that solve a critical business problem and not those that are just the newest technology out there. Our panelists discussed the wide variety of insuretech options in the market and how common it is for companies to want the newest capabilities available, but it’s key to keep the business goals and needs in mind when selecting insuretech partners. One panelist noted that given current economic uncertainty, it’s even more important to ensure that insuretech solutions are aligned to business needs and will provide measurable value. Implementing new technology with a clear and clean exit strategy is also key to any future changes with the startup.

Aite-Novarica Women’s Network virtual meetings will resume in 2023, with the first meeting of the year taking place on January 25. More information is available here.

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What Is Executive Coaching?

Many people have assumptions about what executive coaching is, but our panelists explained that coaching is a structured, formal process that can be offered to employees at any level. Coaches and individuals work together to define specific, measurable goals focused on that person’s development to enable success and satisfaction in their role. A coaching relationship should be grounded in trust, data, and chemistry between the coach and the client. It is a safe and nonjudgmental environment to discuss blind spots and room for growth.

Our panelists also described how coaching is beneficial both for the individual client and for the client’s organization as an opportunity to develop its employees. At its best, coaching should be sponsored by the organization to align with company strategies and values. When coaches are selected in partnership with the organization, the coach can talk to other members of the organization to understand the culture and context in which their client works. Our panelists encouraged our members to ask a leader or manager for an executive coach and stated that doing so shows you are invested in developing your skills.

Addressing Challenges Women Face in Their Careers

Our panelists described how working with a coach can assist with some of the unique challenges women face in their careers, such as work-life balance, speaking up, and pressures to “fit in.” Coaches help their clients set development goals, focus on what’s most important without burning out, and be their authentic selves in the workplace. This is done through self-reflection to identify their values and the development of self-awareness and management to fully contribute their best selves at work.

The coaches also emphasized the need to, “identify someone who is a sponsor for your success.” While finding female mentors in the industry was identified as a challenge, one panelist explained that a sponsor does not need to be someone who “looks like you” as long as they are willing to give you a shot and champion your abilities. Expand your network and cast a wide net inside and outside your organization, as well as in your broader community.

How to Prepare for Coaching

The coaches ended our meeting with a discussion of what makes a coaching partnership successful and how to know if you’re ready for coaching. In order to be ready for coaching and have an effective engagement, an individual needs to have a desire for and openness to change, willingness to experience discomfort and discuss areas for growth, and readiness to experiment with new behaviors.

Individuals must be prepared to be accountable for their behavior in the workplace and learn to control their response to the environment in order to succeed. Some of coaching is trial and error—being willing to try new things and experiment with different behaviors and then come back to your coach to analyze how things went and how to improve in the future.

The next virtual meeting of the Aite-Novarica Women’s Network will take place on August 10th, 2022 on the topic of “When to Call it Quits on a Project,” led by Aite-Novarica Group Senior Principal Deb Zawisza. More information is available at https://aite-novarica.com/womens-network.

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On April 27th, I hosted the latest meeting of the Aite-Novarica Women’s Network on optimizing business and IT alignment. Panelists Larissa Tosch, CIO and Executive Vice President of Client Service Operations at Glatfelter Insurance Group; Kacie Sires, Senior Delivery Manager in US Insurance Solutions Implementation Project Office at Principal Financial Group; and Carey Geaglone, Senior Principal at Aite-Novarica Group shared their perspectives.

Benefits of Business and IT Alignment

We began our discussion with why it is important to have alignment between business and IT. One panelist noted that it is not only alignment that is needed, but an alliance: “Alignment means you have ducks in a row, but alliance is a shared partnership and shared ownership. There’s no finger pointing, there’s a shared culture of accountability, and you own the results together.”

Panelists agreed that the end result is better and delivered more quickly when business and IT collaborate effectively. One panelist used the analogy of a team, stating, “Strong teams that have strong trust and work together deliver faster and better products; that’s the goal.”

Obstacles to Creating Alignment

Panelists discussed several obstacles to alignment, including a lack of common language, the need for defined roles, and siloes between business and IT. One panelist told a story of an email she received from an IT director that was too technical for her to understand—in her response, she described what she understood from the message and asked for clarification: “I said, ‘I think what you’re saying is you don’t have enough capacity for these initiatives, you need to evaluate your capacity, is that what you’re saying?’ We need to work on our language.” When there is a lack of common language, it is important to ask for clarification; if you don’t understand the problem, it is hard to solve it.

One panelist emphasized the need to define and clarify roles, as well as the shared objectives and goals. Getting everyone on the same page early on eliminates the need to spend time defining those things so everyone can focus on the project. Another panelist agreed that it is important to define roles but suggested that roles need to be fluid enough to allow teammates to go where they are needed rather than overly rigid and bogged down by process. She stated, “Sometimes there are processes that result in pointing fingers and moving backward instead of forward; anything you can do to dissipate the old-school power struggle that occurred often between IT and business will break down the siloes.”

How to Achieve Better Alignment

In addition to defining roles early, breaking down siloes was commonly mentioned as a way to promote alignment between business and IT. One panelist described how her organization created a governance council where each business unit has a voice to set priorities for the organization. This reduces perceptions that IT is making decisions and treats product owners and IT as a team. Another panelist described her organization’s success using a similar model, “When we look back at why we didn’t meet the outcomes, everyone raises their hand and says, ‘Here is what we could have done differently.’ There is no finger pointing, that how you know it’s a team.”

Creating more lines of communication between business and IT, starting collaboration as early as possible in the project life cycle, and working to identify a common language are all good places to start when striving to achieve better alignment, or an alliance, between business and IT.

The next virtual meeting of the Aite-Novarica Women’s Network will take place on May 25, 2022, on the topic of “Mastering the Many Facets of Project Management.” The discussion will be led by Aite-Novarica Group Senior Principal Carey Geaglone. More information is available at https://aite-novarica.com/womens-network.

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