53% of Insurance executives surveyed responded

that their business would be moderately or massively

disrupted by digital in the next 12 months.

ServicesNot-for-Profit

Insurance TechnologyRetail

52%52%

52% 53% 57%57%

61%

53%

Professional

Business and

Banking

Retail

GoodsPackaged Consumer

Digital in InsuranceAs we enter the next era of P&C and Life Insurance with the introduction of innovative technologies, new competitors and changing customer preferences, Insurance organizations are beginning their digital journey and are defining their digital pulse. With the industry si�ing in the middle of the disruption barometer, Insurance executives will need to face transformations across their culture, decision-making processes, front and back office functions, and talent needs as they move from digital awareness to digital maturity and enablement.

What Is the Digital Pulse of Insurance as a Sector?DIGITAL DISRUPTION BAROMETER

Insurance sits directly in the middle of the disruption barometer along with Business and Professional Services, Consumer Packaged Goods and Technology sectors.

Source: 2015 Russell Reynolds Associates’ Digital Pulse StudyTotal participant responses across all industries: 2053 Responses from Insurance participants: 190

Ope

n to

new

idea

s

Cha

lleng

e tr

aditi

onal

app

roac

hes

Gen

erat

e in

nova

tive

solu

tions

Abs

trac

t thi

nkin

g st

yle

Inqu

isiti

ve

Thin

k ou

tsid

e th

e bo

x52

%

24%

19%

27%

49%

31%

Innovative

Will

ing

to ta

ke c

alcu

late

d ris

ks

Go

agai

nst t

he g

rain

Cut

thro

ugh

bure

aucr

acy

Entr

epre

neur

ial s

pirit

Inde

pend

ently

min

ded

29%

24%

56%

30%

21%

Disruptive

Soci

ally

con

fiden

t

Adap

t to

diffe

rent

aud

ienc

es

Seek

to u

nder

stan

d pe

ople

21%

21%

22%

Socially Adept

Take

initi

ativ

e an

d te

st li

mits

Lead

from

the

fron

t

Iden

tify

limita

tions

Dec

isiv

e21

%

19%

21%

29%

Bold in Leadership

Opt

imis

tic

Seek

hig

h le

vels

of a

ctiv

ity

Achi

evem

ent o

rient

ed19

%

15%

14%

Determined

Do Your Leaders Have the Skills to Transform?Critically, digital transformation leaders are not only disruptors and innovators, but they possess the influence and leadership skills necessary to guide their organization through a successful transformation.

DIGITAL TRANSFORMATION LEADERS VS. ALL OTHER SENIOR EXECUTIVES

Statistically Significant Differences in 21 Psychometric Scale Scores

How Far Has Your Organization Traveled Along the Digital Journey?2015: THE YEAR OF DIGITAL ADOPTION

Though response to industry-specific disruption is happening at a different pace from one sector to another, many companies now are moving toward an integrated approach to digital transformation.

Meaningful investment

Have a digital strategy

Several digital leaders in catalyst roles or key functions (CMO, CTO, etc.)

Standalone digital function or concentration of digital talent in a few key functions

Some visibility in all channels but disjointed

In transition

1-2 digital directors

Engaged in and supportive of the digital agenda

Take risks with core business

Digital is fullyintegrated into overall company strategy

Digital is a competency of all C-suite executives, including CEO

Digital competency at all levels and areas

Single view of customer across all channels

Innovation and adaptability embedded; learning orientation

3+ digital directors

Thoughtful approach to strategy, succession planning and ongoing innovation

DIGITALADOPTION

DIGITALAWARENESS

DIGITALLYENABLED

Lip service

Increasing awareness of risks and opportunities

A few director-level digital executives (likely junior)

Digital talent is sca�ered and/or siloed

Some visibility in some channels

Rigid, inflexible

No digital directors

Don’t know how to ask the right questions

Vision and Strategy

LeadershipTeam

View of Customer

Culture

BoardComposition

Governance

Commitment

Organizational Structure

Source: 2015 Russell Reynolds Associates’ Productive Disruptors Study

Who Owns the Digital Vision and Strategy of Your Organization?

However, in most companies (Insurance and otherwise) digital currently is led by someone without a dedicated focus on its success.

Insurance vs. Average (All Industries)

Chief Customer OfficerChief Digital Officer

Chief Technology OfficerChief Information OfficerChief Marketing OfficerChief Executive Officer34%

17%14%

5%4%

36%20%

11%4%

6%3%

3%

Insurance A

verage (All Industries)

IT

Marketing

Sales

Business Operations

E-commerce

93%

93%

89%

87%

80%

Functional Silos

Lack of Digital Expertise/Skills

Insufficient Management Bandwidth

Lack of Funding/Budget

76%

75%

74%

71%

68%

Organizational Inertia

FIVE TOP BARRIERS TO EFFECTIVE DIGITAL TRANSFORMATION

When asked what the biggest barriers to effective Digital Transformation are, Insurance executives emphasized challenges related to skills, leadership and organizational structure

Most Significant Barriers to Digital Transformation: Percentage of Insurance Executives

FIVE FUNCTIONS MOST IMPACTED BY DIGITAL

TRANSFORMATION

Insurance executives expect digital to have a sweeping

impact across tech-minded and customer-facing functions

Functions Most Impacted by Digital Transformation in the Next 12 Months:

Percentage of Insurance Executives

Does your Company Have a Digital Transformation Strategy?

The majority of Insurance organizations have an established digital strategy.

Insurance vs. Average (All Industries)

15%

6%

18%

8%Not Sure/Other

No

78% 74%Yes

Insurance A

verage (All Industries)

How is Digital Leadership Structured in Your Organization?

In addition to the absence of dedicated digital leadership at a senior level, two out of five organizations have a centralized digital structure—a single team under a single leader rather than expertise integrated across the organization.

Insurance vs. Average (All Industries)

All

Insurance

Don't Know/Other

Hybrid

Decentralized

Centralized39%

19%

40%

1%

42%

16%

40%

2%

Insurance A

verage (All Industries)

C

M

Y

CM

MY

CY

CMY

K

R511031-rr-0052 - digital in insurance DRAFT10.pdf 1 13/11/2015 16:56