Risk managers in the insurance industry face a lack of available skills.
Faced with emerging threats and rapid changes in the economic environment due to new technologies, those responsible for risk management must continue to participate in the control of an insurer’s activity which is itself undergoing rapid change. In this context, one of the challenges for risk managers is to find the right balance within teams between new talent and risk management specialists.
But how do you get there?
Over the years, our global study on risk management has shown that this balancing act has never been easy for companies in the financial services industry. In 2009, the resources of the risk function were already scarce. Two years later, the function had grown enough to lead to an increase in staff, but the lack of specialist talent was still sorely felt two more years later. In 2015, data specialists had never been so in demand.
And since 2017, the date of our last global study on risk management, risk managers in the insurance industry have faced a talent shortage – more precisely, talent qualified in new digital technologies and management. Data.
You could almost say that by definition, managing the skills shortage in emerging technologies is systematically on the agenda. Thus, without being discouraged, those in charge of risk management of insurance companies have been forming multidisciplinary teams for several years.
Despite the shortage of qualified talent, both in emerging technologies and in other specialized fields, they are working to build competitive teams. In recent years, the demand for risk management skills has increased. At the moment, according to the managers interviewed, specialists in risk management data analysis are particularly sought after in addition to the actuarial skills already present in the teams.
Every day, insurance companies’ risk managers strive to build teams that can meet a wide variety of needs. Indeed, beyond taking into account changes in the regulatory and market environment, the new tools and processes are changing the way in which the teams in charge of risk interact with other members of the company, but also with partners, regulators, customers, and others external stakeholders.
To meet these needs, risk managers of insurance companies can take some of the following actions:
- Use staff from other parts of the business to build credibility and facilitate relationships.
- Recruit specialized staff in different fields (including economics, law, and engineering).
- Combine old and new skills: that is, create centers of analytical excellence, in which risk managers and senior actuaries collaborate with a new generation of tech-savvy proteges.
In this article, we have discussed the search for rare skills and their connection with various internal and external actors. In the next one, we will look at the question of the integration of the risk function with the other functions of the company and the challenges associated with it.