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PwC's new report, Insurance 2020: Unleashing the value from values, finds that when there are so many economic, structural and market challenges to contend with, organisational culture can sometimes seem like an afterthought for many insurance companies. But to tackle these transformational issues most efficiently, a corresponding change in culture is required.
A more agile, innovative, risk-conscious and customer-centric culture is set to be the primary competitive differentiator in the new business landscape. In order to spur real change and deliver real value, insurance companies must look at their people and the environment in which they operate. Moreover, while regulators were once reluctant to impinge on culture, it's now at the top of their agenda as they seek to instil greater risk awareness and tighter safeguards for customers.
David Law, global insurance leader, PwC said, "With people around the world living longer and having more wealth to protect, insurers have a bright commercial future provided they can keep pace with the transformation in their marketplace. In a period of unrelenting change, culture can be your greatest ally or your biggest enemy. By actively shaping your organisation's culture you can use it to your competitive advantage."
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The report also found that while many insurers are seeking to remodel their culture for the new market realities, most are only scratching the surface because they're failing to translate their high level intentions into real changes in the way their people behave and make decisions. Communications and training alone won't drive change.
Organisations must identify their employees' most telling habits and routines (the 'moments that matter') and actively shape them. The key to achieving this are the five golden rules of a high performing culture: 1) Make sure your purpose, vision and values are clear, tangible and actionable 2) Identify and focus on the moments that matter 3) Ensure active leadership and example from the top 4) Ensure active support and investment to bring all elements of the high performing culture together 5) Measure, feedback and adjust.
