Digital transformation is the most important threat to large companies in the insurance industry

In this event, which was held with the participation of a group of innovators and innovators in the insurance industry and startups active in the field of Inshortek, Dr. Hamid Kordbacheh, Director of the Insurance Research Institute, gave a speech focusing on the challenges of large companies in digital transformation.

Referring to the serious attention of the insurance industry to the field of digital transformation in recent years and the events and studies conducted in the country, Kurdbacheh said that foreign studies also emphasize that the future of the insurance industry will be digital futures, meaning mastery and application of intelligence. Artificially, the Internet of Things, data science, and big data in business applications will make the industry highly digital in less than a decade.
He pointed out that the issue that has received less attention is the position and role of large insurance companies such as Iran Insurance Company, which have a significant market share, as drivers of digital transformation, as well as their challenges in dealing with digital transformation.
The head of the Insurance Research Institute added: “Considering the indivisibility of research and development costs and the inability of small insurance companies to cover their high costs, large insurance companies in research and development can play a decisive and driving role in the development and application of new technology.” However, despite the ability of large insurance companies to invest heavily in this area, they also face challenges that, if left unchecked, could quickly lose their market share and position, and even threaten their survival.
The head of the Insurance Research Institute said that what makes this risk more serious for large insurance companies is that the change in this process is no longer as linear as before, as the share of a new small company gradually grows at a fixed rate, not even exponential growth. Rather, it can be a leapfrogging process that in a short period of time, for example two years, turns a small company into the largest insurance company in the country, so this risk is more serious for large companies than the presence of new companies in the privatization period.
In this context, Kurdbacheh, while pointing to the main challenge of digital transformation in front of large companies, the challenge of manpower, organization, stagnation, governance and working with startups and new technologies as important challenges and the two main cases for Iran Insurance Company Discuss the contract.
The head of the Insurance Research Institute added: “Digital transformation is actually accompanied by a change in the structure of work.” That is, the structure of the company’s work will change from a user structure to an employee structure. In this case, the most important challenge for large insurance companies such as Iran Insurance with more than 4,000 employees is the challenge of human resources and representatives. That is, it has manpower that it does not need, and reciprocally, it needs manpower and skills that it does not have. what should we do? Such a situation will be very complicated because, legal and social considerations do not allow you to replace your current force. Nor can this force meet your need for digital transition. What is considered to be a successful experience in overcoming this challenge in the world is the retraining of skills and skills development of human resources with a huge, innovative and, of course, completely innovative and creative training program that is no longer necessarily based on traditional and conventional training. It is also important to review the recruitment programs focusing on new technology areas. What makes the need for this program more serious for large companies is the limited workforce in the fields of technology in industry, the inability of those who are often state-owned to compete with private companies to attract the same limited workforce, and of course the high migration rate and even employment. It is not in the form of a freelancer or a freelancer in foreign companies. Therefore, the management of large companies must quickly think of a way to retrain the workforce and improve the skills of the current workforce by combining core skills and digital skills, and plan and pursue on-the-job training and, of course, on-the-job training.
The large scale of companies, their traditional fixed structures, their inertia and agility, the existence of management and hierarchical processes, the mentality of coping with changes in the middle management and body of these companies, the complexity and slowness of decision-making and decision-making in them and government and regulatory constraints Called the second challenge facing the country’s major insurance companies, which is very difficult and, of course, very vital to overcome this challenge. The transition to digital health and the survival of large companies in the insurance industry requires serious attention and extensive planning, re-engineering of structure and process, and agility to overcome this challenge. In this regard, paying attention to startups and investing in them, which are very agile, and are based on continuous innovation and intelligent and horizontal management model, is one of the successful solutions being experienced in large global companies to overcome the organization’s challenge in dealing with change. It is digital. Accordingly, the management of large companies to maintain their survival should pay serious attention to creating accelerating centers and innovation and discovering ideas and supporting them in the form of startups and the gradual transfer of activities from the traditional structure to them, as one of the effective ways in digital investment. .
In the end, referring to the capacities of the Insurance Research Institute as a scientific, technical and knowledge arm of the insurance industry, he announced the readiness of this research institute to accompany and cooperate with all activists in the insurance industry in this direction and promote the position of the insurance industry.