McKinsey & Company has produced a new worrisome study. What it calls “Illustration Of Service Oriented Layered Architecture And Global Automation” will eliminate or consolidate 25% of the insurance industry’s full-time positions by 2026.
And with that the company called on insurers to rethink priorities and to rethink those priorities “right now.” They are urged to revamp operations to take care of the digital transformations that are contributing to this trend. That — McKinsey said — “should include retraining and redeploying the talent they currently have, identifying critical new skills to insource, and retuning value propositions in the war for new talent and capabilities. That competition will almost certainly increase as the digital transformation takes hold.”
The study notes most of the change we’ll be seeing in the next decade will take place in operations. Just 33% of the workforce will be in operations at the end of that time period. That’s down from 46% in 2015. Automation is going to leave 10% of the insurance workforce working on administrative reports. In 2015 that figure is 18%.
Look for smaller changes in product development, sales support and marketing. It’ll drop from 21% in 2015 to 20% in 2026.
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