Insurtech Talent Development in Hong Kong – From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline

35 69 McKinsey & Company (2020, July). Transforming the talent model in the insurance industry . https://www.the -digital-insurer. com/wp-content/uploads/securepdfs/2021/04/1776-Transforming-the-talent-model-in-the-insurance-industry-v3.pdf 70 McKinsey & Company (2020, September). How US insurers can build a winning digital workforce for the future . https://www. mckinsey.com/industries/financial-services/our-insights/how-us-insurers-can-build-a-winning-digital-workforce-for-the-future 71 HKUST Business School (2022). Fintech Manpower Development in Asia-Pacific Financial Centers with A Focus on Artificial Intelligence and Big Data Professionals . https://bm.hkust.edu.hk/en-us/media-resources/overview/publications/reports/ issue:6 Exhibit 17: Change in mix of skills required for key roles in insurance Source: Transforming the talent model in the insurance industry 2020 Call center IT infrastructure IT application development and maintenance Sales (agency management) Actuarial Underwriting Claims Finance 5% 45% 50% 20% 40% 40% 20% 60% 20% 20% 70% 10% 50% 35% 15% 40% 30% 30% 15% 35% 50% 35% 10% 55% Status quo (low level of change to skills/tasks) Slimilar task but new skill or scope Automation According to McKinsey, insurers in the United States lag behind other financial services companies in digital talent, with employees in digital roles at insurers only accounting for 8 percent of the total US workforce. 70 Our previous research also indicates that insurance lags hugely behind the financial services sector in AI and big data professionals across all six Asia-Pacific financial centers, namely Hong Kong, Singapore, Tokyo, Shanghai, Shenzhen and Sydney. 71 The competition for technologically skilled talent will not only be with peers within the insurance industry, but also with other cutting-edge industries and beyond geographical boundaries. Creating a Winning Insurtech Talent Development Strategy for Hong Kong As the insurance industry further digitizes, there will be an increase in automation of services for some of the essential functions such as underwriting, claims and customer service. Automation will drive the demand for more technologically skilled professionals within the industry, as well as changing the mix of skills required for the key roles in insurance (Exhibit 17). 69