Change management needs to happen well below the surface in order to affect any real change to the outcome – especially to navigate through the complex landscape of today’s insurance industry. The path the insurance industry bears some considerable similarities to the Titanic’s fateful voyage. To avoid potential disaster, industry executives, like the designers of the Titanic, could stand to learn from glaring mistakes in listening to the warnings signs, having a flaw in the overall strategy and design.
When the Titanic set off on its maiden voyage, no one could have imagined it was destined to sink. The architects were sure that, “not even god himself could sink her.” They estimated that the ship’s majestic appearance alone could bring customers. The crew of the Titanic was so sure of their design, they even ignored calls that treacherous icebergs were ahead. They neglected some obvious measures; the insurance industry must not follow the Listen to the warning signs that “icebergs” are ahead.
Unlike the Titanic, the insurance industry must not operate autonomously. There are many warning signs that the world around and inside the insurance industry is changing. Insurers must listen for and embrace changes ahead.
If an “iceberg” is sighted—have the ability to respond swiftly
The Titanic was so large it was unable to respond quick enough to shift direction before hitting an iceberg. Insurance markets will continue to reshape and change. Insurers not only need to have agile IT systems and environment, but all key business processes must be flexible and responsive enough to meet the unexpected “icebergs” of the marketplace.
Have an accurate and detailed roadmap.
It appears the maps on the Titanic were out of date, which was a deadly error. Documenting linkage between strategy, process, and the right technology investments into a detailed business and IT roadmap is critical. Throughout their own voyage, insurers need to track progresses and update with the new lessons learned.
Have a state-of-the-art architectural blueprint that is vetted
The owners and crew of the Titanic believe the ship was unsinkable, but the design was flawed. Identifying vulnerabilities in the business processes and IT environment are the first steps in determining the blueprint for the future. A detailed blueprint defining the future business and technology goals will provide insurers with added dexterity in the face of problems.
Have a contingency plan
On the Titanic there were not enough life boats to save the people because they thought they would never need them and looked unsightly from the deck. Insurers can never plan enough for the future. Even with the right roadmaps and architectural blueprints, and the capability of agility and flexibility processes and systems; we still need a contingency plan in case the perfect storm arises.
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