Page 20 - Turkinsurance Digital Magazine

20 cover story

HOW INSURANCE CEOS AIM TO BUILD TECH TALENT

Relocating your operations closer to available talent pools 18%
Working with educational institutions 23%

Improving compensation and benefit packages 23%
Changing employee dress codes 29%

Changing brand perception through marketing and advertising 36%
Outsourcing to external providers 38%

Partnering with external providers 45%
Implementing continuous learning and development programmes 45%

Implementing new flexible ways of working (e.g. mobile and remote… 49%
Modernising the working environment (e.g. rolling out digital tools,… 53%

Source: PwC’s 21st CEO Survey, Insurance

The Survey, in which 70 CEOs from Turkey attended, deter- with 16 percent in 2020, it escalated to 10th with 8 percent in
mined that CEOs are expecting an increase in economic growth 2021.
speed in 2021 following the year in which global GNP de-
creased by 3.5 percent. 2021 results which exceed the “opti- CEOs of the insurance sector believe in global economic
mism record” of the survey carried out by PwC in 2018 with growth
20 points revealed that there is an extremely positive expecta-
tion towards economic growth in all regions of the world. The CEOs of the insurance sector continue to highlight that their
Survey which determined that 70 percent of Turkish CEOs are sector is the one that is affected by the transformative power of
expecting growth revealed that this positive expectation is not the technology at most. On the other hand, their optimism con-
just for global growth but also for CEO’s companies. tinues to increase. One of the underlying reasons for this pos-
itive outlook is that the possible transformation caused by the
Global CEOs who sum up the first 4 markets for the growth of new competitors has not yet materialized to the extent feared.
the companies in 2020 as the USA (29.7%), China (28.5%),
Germany (12.8%), and India (9.4%) stated that they expect On the other hand, external threats and the effects of short-
higher growth in USA market than China in 2021 and they term transformation may have been exaggerated in the past,
included England in the top 4 of the list after Brexit; USA but the managers of the insurance industry should not ignore the
(34.7%), China (28.1%), Germany (16.6%) and England urgency of transforming into customer-focused companies with
(11.4%). digitalized and flexible business models.

The Survey shows that even though CEOs are optimistic about Insurance industry CEOs are more concerned about the pace of
the future, they see significant threats to the global economy. technological change than leaders in other industries (85%).
CEOs consider the pandemic as the first threat and foresee that Changes in business models by technological developments are
consumer behavior will not improve even though the vaccination challenging, especially for an industry like insurance, which
process is significantly carried out. Even though CEOs consider is accustomed to a longer period of change rather than rapid
digital transformation as an important growth area, they place transformation.
the notions such as cyber-attacks, misinformation, and digital
fraud at the top of the threats list. While, in 2020, CEOs con- To keep up with this pace, companies need a clear strategy and
sider the threats consecutively as over-regulation (36%), trade a roadmap to disable existing systems, accelerate automation,
conflicts (35%), uncertain economic growth (34%), and cyber- and prepare the appropriate environment for the next wave of
attacks (33%), their 2021 threat list is pandemics and health transformation. In addition, they need to spread innovation
crisis (52%), cyber-attacks (47%), over-regulation (42%) and throughout the organization and afford to try or even fail at-
policy uncertainty (38%). While misinformation ranks 20th tempts within this framework.