COVID-19 has helped speed up technological changes in the insurance industry, which in turn is “future proofing” itself by investing in ways to modernize other parts of their business. At the top of their list of “must haves” insurers are prioritizing innovation and focus, the importance of attracting new talent and continuing to help advisors best meet the needs of their clients, those attending a recent LIMRA conference were told. 

Jennifer McGarrity, vice president Strategy and Enablement at RBC Insurance, said COVID-19 has shone a light on the need for more creative and innovative solutions, aimed at clients and delivered at record speed.

Without this “always on” capability, insurers will no longer be quick to change, have access to the kinds of talent and resources they require and provide the kinds of technologies and solutions advisors need and want, McGarrity said. 

Non-traditional companies 

Canadian insurers are also keeping a keen eye on non-traditional companies coming to the insurance market. These businesses, she said, tend to move quickly and use their scale to their advantage.

“Innovation that had been optional for business has now become mandatory. And that’s a huge change of mindset for the sales force.” - Frederic Glorieux 

This means insurers are constantly working on staying focused, keeping innovation top of mind as well as pondering partnerships and constructing metrics to measure how well the firm is doing.

“To me, the construct of ‘always on’ innovation isn’t a project – rather it’s a part of how we do business, how we move our businesses forward to form part of our culture … in terms of thought leadership and talent,” said McGarrity.

It’s crucial to understand that innovation is a mindset, not a single project, added Frederic Glorieux, senior director of Underwriting and New Business at iA Financial Group. 

Pandemic fuelled change 

Insurers used to have a reputation of being slow to change, but the pandemic has changed that way of thinking for good, said Glorieux.

“We don’t think this is just a one-time thing. Innovation that had been optional for business has now become mandatory. And that’s a huge change of mindset for the sales force,” he said. When COVID-19 hit North America it immediately led to changes in how some business was conducted, including allowing wet signatures and virtual visits.

Now the industry needs to hire and work with new employees and concentrating on prioritizing specific projects, he said. 

In fact, there is “an incredible sense of urgency” to undertake tasks that used to take months but now only take a few weeks, said Veronique Dorval, senior vice president Client Experience Office at Sun Life.

Once a firm knows what it wants from a new strategy, it can move faster than before, she said. In particular, insurers like Sun Life spent the last year and a half focusing on how to make the industry better for the client. Delivering a good experience for the client through technology also requires the insurer’s back office be more integrated, said Dorval. 

Self-serve distribution 

Distribution is not just in the hands of brokers and agents any longer, she noted. Over the past few years the system has moved from advisor only to self-serve and hybrid options, accelerated by the 18 months of the pandemic.

The challenge for insurers now is how to integrate all those forms of selling with different kinds of technological tools, allowing advisors to pick and choose how they want to work. “You see a lot of advisors who have embraced and are demanding more digital support to manage their business more efficiently.”

In the end, Dorval said embracing technology and using other tools will help advisors manage a large block of business yet still be able to make it personal and engage each of their clients.

Customer needs and wants are also a top priority as insurers try to keep up with changes in consumer behaviour, preferences and choices, said McGarrity. 

Health benefits 

When it comes to health benefits, insurers are trying to blend health and financial wellness, which have become more deeply connected since the onset of the pandemic. When COVID-19 hit, Sun Life experimented with virtual care and within a few months began offering the service to three million Canadians. 

There are a number of other projects that insurers would like to delve into in the future. 

“The nice-to-haves sit to the periphery or on the list of things to do so that we can keep laser focused [on major issues],” she said.