In many cases, companies have not realized the full potential benefits of their change initiatives because they have not fully considered the people implications — communication, training on new systems and processes, identifying the relevant skills sets, etc. To help ensure profitable change outcomes insurers’ must consider the people challenges and how to best address them.
There is need for greater integration and the moving of processes and roles across traditional departments. Understanding the relationships between Finance, IT, Risk, Actuaries and subsidiaries is key to the organizational design and fostering its success by identifying the barriers to change.
Insurance companies are increasingly exploring how to leverage offshore captives and outsource arrangements for finance and actuarial processes to achieve cost efficiencies and access to labor markets. Defining the sourcing strategy as part of the operating model is imperative within a finance transformation program. It is a key lever for optimizing costs, organizational design and capabilities.
Culture and change
People changes during transformation require flexibility and leadership in a fast-changing environment. A finance transformation program will require an innovative change management approach, to clearly understand and measure the impact of the initiative, as well as the means by which to engage all members of the organization throughout the program.