Primary activities

Explore the seven primary activities of the insurance value chain for commericial, personal lines or life and health insurance using the interactive component below.

 

Commercial insurance
Product and service development
The new reality
  • The core product suite will not change greatly but brokers and insurers will need to better explain coverage and exclusions
  • Aspects of the terms and conditions will change for certain products
  • New product offerings or riders will be entering the market
  • Emphasis on streamlining products as many insurers believe that will lead to:
    • accelerating digital
    • improved exposure management
    • better transparency for customers
Actions to consider
  1. Conduct a review of product terms and conditions, including basic plain English description of policy or suite, to determine approach exposure or perception concerns
  2. Identify new or modified service/offerings based on recent events:
    • examples include risk strategy reviews and preventative measures (including lowering worker risk when returning to work)
  3. Develop better understanding of product positioning and consider changes to associated operating model
Marketing
The new reality
  • An increased awareness of marketing cost/return will be required in an increasingly severe economic environment, requiring a better directed and empathetic message
  • Operating models must adapt to meet several new requirements, including:
    • brand and trust messages to key stakeholders
    • enabling distribution with the right messages and stories to make a real connection
    • identifying the right market mediums for communications
  • New critical path for shifts in the operating model must be rapidly understood to ensure better ways of working
Actions to consider
  1. Consider reputation risks and adapt business and product approach accordingly, while also taking into account social responsibility to build or enhance a positive image
  2. Understand the adjusted market messages and stories needed to enable distribution, sales and service to tell winning stories in the new reality. Generally, these messages should be grouped into four key areas:
    • book must retain
    • book need to recover
    • book need to obtain/add new
    • book we need to sell more into (second sales)
  3. Working closely with distribution, operations and technology, identify the operating model enablers for marketing — also known as the mediums:
    • given the majority of the face-to-face relationship investments, how will it change going forward?
Distribution and sales
The new reality
  • Large and upper middle market business will still be mostly broker driven, however, insurers will need to focus on developing a better understanding of the needs of their current and prospective clients
  • Approaches to identifying, renewing and securing new business will be changed as well as updating client relationship management systems
  • Upgrades in enabling technology in support of distribution will be substantial
  • Middle and small market business will experience a significant shift in how that business is secured by insurers
  • Direct-to-consumer technology-enabled processes will add a handful of brokers, who are adapting how they work to corner this market
Actions to consider
  1. Review brokers/portfolios to better understand bind ratios and profitability by broker
  2. Upgrade distribution and sales strategy. Assess distribution and sales strategy for each key segment, especially considering a few key factors:
    • talent and effectiveness
    • significant request for proposal (RFP) response activity with very low win rates
    • possible push toward more direct-to- consumer for small commercial, standard package products
  3. Develop the new way of working for distribution with special attention to four key areas: 1) pre-request for information (RFI) activity, 2) RFI response, 3) RFP response, and 4) deal closure. Emerging new enablers include:
    • using analytics to understand what pre-RFI touchpoints matter the most
    • using cognitive technology to generate RFI responses
    • shifting the focus of the function from doing to advising current and potential clients, etc.
Underwriting
The new reality
  • Underwriting will be digitized across all segments focused on:
    • portfolio management at the SME/lower middle market end
    • curated risk selection and decision taking in the middle market
    • information rich expert underwriting management for multinational business
  • All will be supported by data and analytics, internal and external, which will reduce foraging for information
  • For straight-through processing, underwriting workbenches and multi-national programs, information will be automatic to enable underwriting decision taking from automated, through curated to deliberate risk review/decisions
  • Dynamic technical pricing models will be incorporated into the digital underwriting processes
  • Tighter underwriting will be a true competitive advantage, especially in a hardening market
Actions to consider
  1. Review digital strategy to assess the move to virtual digital working across products and segments:
    • include a review of business that could have been acquired on digital platforms but has not with the intention of driving adoption
  2. Revitalize data strategy from a business perspective and use data and analytics to drive underwriting excellence and efficiency
  3. Review the end-to-end operating model with brokers and other third parties:
    • review underwriting approach as to how business is to be conducted moving forward
    • consider how firms need to change as a result
Policy administration
The new reality
  • Policy administration is still viewed as a ‘non-core’ set of activities for most insurers:
    • activities can have a profound impact on perception or operating impact when challenges occur
  • Insurers have recognized the dependence on manual processes:
    • intense focus will be on further automation of standard processes
  • Operating models will require review and upgrading:
    • to ensure they are more ‘battle-tested’
    • by identifying ways to ensure better performance even in times of disruption
    • to mitigate risks
    • to enable resilience while driving efficiency
Actions to consider
  1. Assess critical path processing activities with special consideration to on-shore, near-shore and offshore activities
  2. Review controls and business continuity plans of key third-party suppliers and their sub-contract parties:
    • consider areas of concentration
  3. Review automation strategy and accelerate automation projects for lines of business where policy administration may be automated
Claims management
The new reality
  • Insurers will accelerate the drive to digital end-to- end claims processes
  • Where change budgets have been cut, insurers will consider low code or no code solutions in conjunction with the core legacy platforms:
    • these solutions can help organizations to move to digital more quickly and at lower cost
  • Functions will also drive to more effective and efficient operations as cost becomes even more of a focus
  • New risks will be presented associated with remote processes which require new control procedures
Actions to consider
  1. Scale the operating model for remote claim handling, including where remote processing will and will not be leveraged.
  2. Enable the broker network through use of technology and training to handle and respond to surge in queries
  3. Understand  leakage areas and where potential exposures reside:
    • process must be technology-enabled, yet subject matter expert anchored
    • identify early fraud warning indicators
Asset and investment management
The new reality
  • Cash and asset management strategies will evolve:
    • increased focus on real-time scenario modeling
  • Insurers will closely monitor credit issues and impact of commercial real estate and loans given the possible shifts in those asset classes
Actions to consider
  1. Evaluate exposure to potentially high risk investments (e.g. commercial real estate and loans)
  2. Enhance monitoring of credit risk
  3. Assess investment strategies given challenging yield environment and shifting views of economic recovery patterns
Personal lines
Product and service development
The new reality
  • A significant shift to remote work seems likely, and therefore will change the potential product suite of home, auto, second home and leisure craft policies
  • Changes in customer behavior, loss of trust in insurance and changing nature of risk provides an opportunity to reinvent the proposition, including a more digital experience
  • New product offerings, riders or changed terms will emerge around:
    • usage-based auto
    • home use for work purposes
    • travel insurance and coverage or exclusions for pandemics (maybe ‘coverage for any reason’ will emerge)
Actions to consider
  1. Introduction or re-introduction of usage-based policies at scale or other new product offerings
  2. Identify any coverage changes or adjustments based on the increased use of home as an office for an extended period of time, or decreased use of autos:
    • for example, clearer definition and triggers on premium returns based on losses
  3. Simplify product sets to enable digital sales and digital servicing
Marketing
The new reality
  • An increased awareness of marketing cost/return will be required in an increasingly severe economic environment, requiring a more directed and empathetic message
  • Operating models may require adjustment based on several key considerations for the future:
    • will the price of the marketing medium be worth the return? (large events cancelled, yet more may view them on TV/media)
    • will tied agents be able to be the second wave of personal marketing?
    • how will the products be positioned going forward?
    • will the discount game (e.g. cheapest price) continue to resonate?
Actions to consider
  1. Update market messaging to reflect customer sentiment and product positioning
  2. Utilize a multi-platform approach while adjusting marketing mediums (e.g. print, mail, digital, TV, event sponsorship) and expected impact analysis to align with spend and return
  3. Update and align marketing function to new needs, which must consider messages, campaigns, mediums, ways of working, capacity and talent
Distribution and sales
The new reality
  • No significant changes to distribution approaches expected in the ‘near term’ due to COVID-19
  • The agent-based model will be stressed in the ‘medium term’, especially considering the cost pressures that model has endured over the past several years
  • Distribution and sales model will focus on obtaining a more optimal balance of direct/digital and agent-force:
    • while also meeting the customer where they ‘want to be met’
    • will present unique opportunities and challenges
  • Regional differences will occur depending on the regulatory environment or simply due to customer preferences
Actions to consider
  1. Reassess the balance needed between agent and digital-assisted distribution models:
    • evaluate the aspects of the model that need to be changed based on consumer preferences
    • strengthen digital sales capability and simplify question-sets
  2. Enhance digitization of processes; move away from paper-based processes and increase integration of front-end processes
  3. Establish the new operating model for distribution and sales considering:
    • how will they work moving forward
    • what physical (versus virtual) footprint is needed
    • what process and technology will be used to interact with clients or targets
Underwriting
The new reality
  • Pricing will be very competitive given that the pandemic significantly reduced exposure for many personal products:
    • less car accidents
    • early detection of event in the home), especially in a prolonged work-from-home world
  • More data-driven underwriting using enhanced technology:
    • consumers are more willing to share personal and usage data via the internet of things (IOT)
  • Analytics to enable ‘smart underwriting’ for relatively simple personal lines products will be a key area of focus
  • Insurers may revisit usage-based products that will play better
    • to consumers with significantly less auto and homeowner risk exposure
Actions to consider
  1. Invest in innovation to make underwriting fully tech-enabled:
    • streamlining the process from quote through issuance (including enablers such as AI, machine learning and predictive modeling)
  2. Continue identifying and incorporating non-traditional data into the underwriting process (e.g. data reading from auto and home sensors)
  3. Explore the risk profiles and pricing models for usage-based products
Policy administration
The new reality
  • Radical shift in customer behavior and acceleration of digital adoption:
    • customers are more comfortable with digital
    • insurers need digital to drive down costs
  • Critical need to adapt all processes to enable a ‘digital first’ culture
  • Contact centers will be reimagined, leveraging automation (voice, chat, etc.):
    • billing and payments will increasingly shift to contactless processing
    • self-service will provide customers with more control
Actions to consider
  1. Review policy admin processes to identify opportunities to automate and enable self-service as means to increasing efficiency and decreasing costs
  2. Understand the customer experience and the ‘moments of truth’ during the maintenance of their policy
  3. Assess technological capabilities and determine where external resources may be required (e.g. vendors, alliances, partners)
Claims management
The new reality
  • Digital claims settlement platforms will become the new norm
  • Insurers need to prepare for the ‘next wave’ of claims by advancing technology-enabled processes
  • Claims handling will transform to a self- adjudication process:
    • one that allows the policyholder to digitally submit and track the claim
  • Automation, including AI, will process the claim:
    • this will reduce/remove reliance on traditional claims personnel and processes over time
Actions to consider
  1. Assess where are the improvement areas in regards to claim experience from insured’s prospective
  2. Automation, digitalization or even less paperwork would create much better claim experience for insured. Re-assess the claim process, partnership possibilities and also digitalization solutions
  3. Develop self-adjudication and automated claims handling capabilities
Asset and investment management
The new reality
  • Flight to safety and stability. For example, potential for increased holdings of government debt and cash
  • More limited appetite for significant investment risk until economic recovery takes hold:
    • will be balanced against need for increased yield given low interest rates
Actions to consider
  1. Evaluate exposure to potentially high risk investments (e.g. commercial real estate and loans)
  2. Enhance monitoring of credit risk
  3. Assess investment strategies given challenging yield environment and shifting views of economic recovery patterns
Life and health
Product and service development
The new reality
  • Core product suite will not change greatly
  • Acceleration of more creative products (e.g. critical illness riders, health oriented products) and services (e.g. financial wellness). Triggers may include:
    • customer-driven preferences
    • regulatory or legislative changes or pressures
    • social responsibility or care
    • pensions savings needs due to economic environment
  • Greater focus may occur on retirement planning or income protection products:
    • especially given greater uncertainty around global and local economies and possible concerns about any future national support
Actions to consider
  1. Develop products that leverage telemetrics to discount premium and promote physical wellbeing
  2. Develop greater access for customers to protection products that are more suited to changing requirements
  3. Digital first concept and adaption to changing customer expectations given the new reality:
    • improve
      the product development to allow for multi-channel sales
Marketing
The new reality
  • Insurers must seamlessly transition to discovering and engaging consumers digitally:
    • pandemic may be driving renewed interest in life products
  • Online presence and easy-to-access educational materials are critical for maintaining brand awareness with an accelerated focus on health and preventative techniques (e.g. counting steps)
  • Changing work patterns are likely to influence how products are marketed such as pensions or retirement savings products
  • More proactive campaigns to retain customers and increase loyalty through ‘emotional connection to the brand’ demonstrating empathy and customer support during difficult times
Actions to consider
  1. Update market messaging to reflect customer sentiment and product positioning
  2. Adjust marketing mediums (e.g. print, mail, digital, TV, event sponsorship) and expected impact analysis to align with spend and return
  3. Update and align marketing function to new needs, which must consider messages, campaigns, mediums, ways of working, capacity and talent
Distribution and sales
The new reality
  • No significant changes to distribution approaches expected in the ‘near term’ due to COVID-19
  • For high-end/wealth segment, the advice model likely to continue
  • Pensions or retirement savings will be linked to the future shape of employment
  • Direct-to-consumer will eventually be the primary distribution method for protection products, enabled by digital capabilities:
    • increasing momentum behind the shift away from the agency model
  • Traditional barriers to sales process will be reduced as will the role of the agent (shift to more usage of virtual / mobile techniques)
  • Regional differences will continue to occur depending on the regulatory environment or simply due to customer preferences
Actions to consider
  1. Reassess the balance needed between agent and digital-assisted distribution models:
    • evaluate the aspects of the model that need to be changed based on consumer requirements and new accepted ways of interaction
  2. Update the stories, based on marketing messages, that distribution and sales will leverage to enable impactful interactions:
    • stories should be told consistently
    through the mediums leveraged
  3. Establish the new operating model for distribution and sales considering:
    • how will they work
    • what physical (versus virtual) footprint is needed
    • what process and technology will be used to interact with clients or targets
Underwriting
The new reality
  • Consumers are becoming more willing to share personal data allowing underwriters to evolve how they evaluate risk and set pricing
  • Insurers will learn to interpret new data, including unstructured, unlocking data from legacy systems and from the internet of things (IOT)
  • Continued focus on streamlined processing and better use of data and analytics (e.g. ‘no exam/fluids’ underwriting)
Actions to consider
  1. Identify opportunities to source and leverage nontraditional data for underwriting
  2. Review opportunities for improved processes and data collection and the use of AI to harness the power of predictive modeling and machine learning
  3. Build technical capability in underwriters recognizing that simpler tasks will be automated:
    • how to train junior underwriters when complex cases go to senior underwriters
Policy administration
The new reality
  • Reduction of policy servicing costs as consumers become more comfortable with digital interactions
  • Contact centers will be reimagined, leveraging automation (voice, chat, etc.):
    • billing and payments will increasingly shift to contactless processing
    • self-service will provide consumers with more control (at lower costs)
  • Outsourcing strategy will be reviewed with transfers and renegotiations expected due to automation
Actions to consider
  1. Review policy admin processes to identify opportunities to automate and enable  self-service as a means to increasing efficiency and decreasing costs
  2. Understand the consumer experience and the ‘moments of truth’ during the maintenance of their policy
  3. Assess technological capabilities and determine where external resources may be required (e.g. vendors, alliances, partners)
Claims management
The new reality
  • Need to reimagine claims handling, even if claims paid do not end up being significantly higher as a result of COVID-19
  • Increased expense ratios will arise from growing volume and potentially limited new business
  • Insurers will race to create operating models that heavily rely on self-service and automation to process claims
  • Automation will focus more on back-end processing given claims is the most significant ‘moment of truth’ for customers
Actions to consider
  1. Evaluate exposure to pandemic-driven claims and include considerations for potential indirect effects (e.g. fewer accidental deaths, reclassification of other terminal illnesses)
  2. Explore and develop automated claims processing capabilities, with focus on developing operating model and staff capabilities to support a more automated environment
  3. Invest in automation to expedite and simplify complex handling processes
Asset and investment management
The new reality
  • Cash and asset management strategies will evolve:
    • increased focus on real-time modeling of solvency ratios due to increased volatility in equities, downgrades and credit spreads
  • Insurers will closely monitor credit issues and the impact of commercial real estate and loans given the possible shifts in those asset classes
  • Regulatory focus on credit risk management, particularly illiquid assets, likely to increase in certain markets
Actions to consider
  1. Evaluate exposure to potentially high risk investments (e.g. commercial real estate, loans)
  2. Enhance monitoring of credit risk
  3. Assess investment strategies given challenging yield environment and shifting views of economic recovery patterns

 

Support activities

Explore the four support activities of the insurance value chain for commericial, personal lines or life and health insurance using the interactive component below.

 

Commercial insurance
Human resources management
The new reality
  • Ways of working have changed significantly requiring a new process for managing talent, with emphasis on:
    • right-sizing workforce
    • right skillsets
    • training
    • performance management
  • Shifts to remote operating models will require revised measurements for productivity/ performance and access to training
  • Access to talent will expand as location becomes less important under a more remote workforce
  • Leaders will need to be equipped and suitably enabled to lead through this transformation
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required) to mitigate health and safety concerns, increased cyber and data privacy risk
  2. Perform a skills-based assessment of current talent and use a scenario-based approach to shift talent to the future state
  3. Identify critical changes that should be made to performance management and training to accommodate a more remote workforce
Finance, actuarial and tax
The new reality
  • Focus on being a valued business partner within the executive leadership team, providing insights including:
    • meaningful internal management reporting
    • evolving cash management strategies
    • understanding tax opportunities
    • finding opportunities to reduce costs/losses (including within the finance function)
  • Better integration of actuarial and accounting functions along with end-to-end redesign of reporting processes
  • Real-time modeling of cash flows and solvency ratios will be a key focus, considering:
    • increased volatility with equities,
    • rating downgrades
    • low interest rates
    • widening credit spreads
    • flight to security
Actions to consider
  1. Embrace technology disruptors to transform operating models and unlock the benefits of innovation and automation:
    • cost reduction
    • increase efficiencies
    • generate insights that can be incorporated into business strategy
  2. Maintain focus on preparing and reacting to federal, state and local regulatory changes to optimize tax planning and outcomes
  3. Identify opportunities for bringing in cost efficiencies through digitization of finance and actuarial processes
Risk management
The new reality
  • Better exposure management processes will be developed and embedded
  • Continued focus on capitalization and any areas of trapped capital
  • Risk management teams must adjust to new and different risks presented by planning for dual operating models — physical vs. virtual.
  • Continued focus on cyber and data privacy risks with a more remote workforce
  • Revived attention on business continuity and resiliency where scenario planning becomes the norm
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required):
    • to mitigate inherent risk, including increased cyber and data privacy risk
  2. Train resources to better understand and monitor insurance risk exposures
  3. Determine the appropriate level of investment for reviewing and enhancing business continuity and resiliency plans (may include collaboration with regulators)
Data and technology
The new reality
  • Digital and data will combine to transform end-to-end processes for claims, underwriting, servicing and sales and distribution
  • Accelerated move to cloud provisioning and adopting global use cases to local cloud solutions
  • Low code and no code solutions will sit on top of legacy platforms to improve overall workflow
  • Acceleration of simplifying legacy estates as security becomes a more significant issue
  • Dual operating models have a high reliance on state-of-the-art technological infrastructure to support remote working, while still aiming to cut operating costs for the long term
  • Access to the market will more heavily require digitally-enabled distribution and marketing channels
Actions to consider
  1. Enhance technology infrastructure to support the organization’s future operating model, most likely a dual construct — physical and virtual
  2. Update the data strategy to harvest, maintain and protect the internal and external data needed to support the current operating model
  3. Accelerate cloud adoption to support flexible work arrangements and client servicing
Personal lines
Human resources management
The new reality
  • Ways of working have changed significantly requiring a new process for managing talent, with emphasis on:
    • right-sizing workforce
    • right skillsets
    • training
    • performance management
  • Shifts to remote operating models will require revised measurements for productivity/ performance and access to training
  • Access to talent will expand as location becomes less important under a more remote workforce
  • Leaders will need to be equipped and suitably enabled to lead through this transformation
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required) to mitigate health and safety concerns, increased cyber and data privacy risk
  2. Perform a skills-based assessment of current talent and use a scenario-based approach to shift talent to the future state
  3. Identify critical changes that should be made to performance management and training to accommodate a more remote workforce
Finance, actuarial and tax
The new reality
  • Focus on being a valued business partners within the executive leadership team, providing insights including:
    • meaningful internal management reporting
    • evolving cash management strategies
    • understanding tax opportunities
    • finding opportunities to reduce costs/losses (including within the finance function)
  • Better integration of actuarial and accounting functions along with end-to-end redesign of reporting processes
  • Real-time modeling of cash flows and solvency ratios will be a key focus, considering:
    • increased volatility with equities
    • rating downgrades
    • low interest rates
    • widening credit spreads
    • flight to security
Actions to consider
  1. Embrace technology disruptors to transform operating models and unlock the benefits of innovation and automation:
    • cost reduction
    • increase efficiencies
    • generate insights that can be incorporated into business strategy
  2. Maintain focus on preparing and reacting to federal, state and local regulatory changes to optimize tax planning and outcomes
  3. Identify opportunities for bringing in cost efficiencies through digitization of finance and actuarial processes
Risk management
The new reality
  • Continued focus on capitalization and any areas of trapped capital
  • Risk management teams must adjust to new and different risks presented by planning for dual operating models — physical vs. virtual.
  • Continued focus on cyber and data privacy risks with a more remote workforce
  • Revived attention on business continuity and resiliency where scenario planning becomes the norm
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required):
    • to mitigate inherent risk, including increased cyber and data privacy risk
  2. Train resources to better understand and monitor insurance risk exposures
  3. Determine the appropriate level of investment for reviewing and enhancing business continuity and resiliency plans (may include collaboration with regulators)
Data and technology
The new reality
  • Digital capabilities are table stakes — front, middle and back office
  • Accelerated move to cloud provisioning and adopting global use cases to local cloud solutions
  • Dual operating models have a high reliance on state-of-the-art technological infrastructure to support remote working, while still aiming to cut operating costs for the long term.
  • Access to the market will more heavily require digitally-enabled distribution and marketing channels.
  • The race to acquire digital, technology and data talent will heat up quickly
Actions to consider
  1. Enhance technology infrastructure to support the organization’s future operating model, most likely a dual construct — physical and virtual
  2. Update the data strategy to harvest, maintain and protect the internal and external data needed to support the current operating model
  3. Accelerate cloud adoption to support flexible work arrangements and client servicing
Life and health
Human resources management
The new reality
  • Ways of working have changed significantly requiring a new process for managing talent, with emphasis on:
    • right-sizing workforce
    • right skillsets
    • training
    • performance management
  • Shifts to remote operating models will require revised measurements for productivity/ performance and access to training
  • Access to talent will expand as location becomes less important under a more remote workforce
  • Leaders will need to be equipped and suitably enabled to lead through this transformation
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required) to mitigate health and safety concerns, increased cyber and data privacy risk
  2. Perform a skills-based assessment of current talent and use a scenario-based approach to shift talent to the future state
  3. Identify critical changes that should be made to performance management and training to accommodate a more remote workforce
Finance, actuarial and tax
The new reality
  • Focus on being a valued business partners within the executive leadership team, providing insights including:
    • meaningful internal management reporting
    • evolving cash management strategies
    • understanding tax opportunities
    • finding opportunities to reduce costs/ losses (including within the finance function)
  • Better integration of actuarial and accounting functions along with end-to-end redesign of reporting processes
  • Real-time modeling of cash flows and solvency ratios will be a key focus, considering:
    • increased volatility with equities
    • rating downgrades
    • low interest rates
    • widening credit spreads
    • flight to security
Actions to consider
  1. Embrace technology disruptors to transform operating models and unlock the benefits of innovation and automation:
    • cost reduction
    • increase efficiencies
    • generate insights that can be incorporated into business strategy
  2. Maintain focus on preparing and reacting to federal, state and local regulatory changes to optimize tax planning and outcomes
  3. Identify opportunities for bringing in cost efficiencies through digitization of finance and actuarial processes
Risk management
The new reality
  • Continued focus on capitalization and any areas of trapped capital
  • Risk management teams must adjust to new and different risks presented by planning for dual operating models - physical vs. virtual.
  • Continued focus on cyber and data privacy risks with a more remote workforce
  • Revived attention on business continuity and resiliency where scenario planning becomes the norm
Actions to consider
  1. Assess new ways of working to evaluate risks and the associated controls in place (or required):
    • to mitigate inherent risk, including increased cyber and data privacy risk
  2. Reassess risk models to factor in new or evolving risks (liquidity, credit default, business closures, etc)
  3. Determine the appropriate level of investment for reviewing and enhancing business continuity and resiliency plans (may include collaboration with regulators)
Data and technology
The new reality
  • Digital capabilities are table stakes — front, middle and back office
  • Accelerated move to cloud provisioning and adopting global use cases to local cloud solutions
  • Dual operating models have a high reliance on state-of-the-art technological infrastructure to support remote working, while still aiming to cut operating costs for the long term.
  • Access to the market will more heavily require digitally-enabled distribution and marketing channels.
  • The race to acquire digital, technology and data talent will heat up quickly
Actions to consider
  1. Enhance technology infrastructure to support the organization’s future operating model, most likely a dual construct — physical and virtual
  2. Update the data strategy to harvest, maintain and protect the internal and external data needed to support the current operating model
  3. Accelerate cloud adoption to support flexible work arrangements and client servicing