Beyond Agile: Embracing the Future of Insurance Transformation

In an ever-evolving insurance industry, the need for agility and customer-centric approaches has never been more crucial. Yet, despite widespread adoption, many insurers still find themselves grappling with the foundations of traditional agile methodologies.

This year we were thrilled to sponsor the Beyond Agile workshop at The Insurance Network’s TINtech event, where our UK Transformation Lead Thomas Bell spoke alongside Paulo Cuomo, Gallagher Re, to shed light on why the industry is moving “beyond agile” and how to stay competitive and responsive to market demands. Here are the key insights.

The State of Insurance: Challenges and Opportunities

The insurance sector has long been characterised by its conservative management culture and a “fire and forget” approach, where distribution channels remain disconnected from the end customer. Historically, there has been little urgency for change, allowing for complacency and inertia. However, the landscape is shifting.

Agility has become more than just a buzzword, as it is now a critical component for competitive advantage. Insurers who embrace agile methodologies are better positioned to meet the growing expectations of their customers and adapt to rapid market changes. Plus, emerging methodologies like Scaled Agile, Team of Teams, DevOps and DevSecOps are all extremely powerful once implemented correctly, but rely on strong agile foundations.

The Agility Conundrum: Why It Hasn’t Delivered

Despite the potential benefits, many insurers have not fully reaped the rewards of agile practices. These four key pitfalls highlight the challenges faced by the industry:

• Lifting and Shifting: Many organisations merely rebadge their traditional waterfall teams as agile without making substantial changes. This superficial adoption fails to align resources, scope, and time with agile principles, creating a disconnection from strategic goals.
• Acting Dogmatic: Accelerated agile adoption can be detrimental when not tailored to the organisation’s specific context. Theoretical coaching and a demand for instant results often overlook the need for practical adaptation and gradual transformation.
• Being Half-In, Half-Out: True agile transformation requires commitment across all levels of the business. The lack of genuine product teams, inflexible funding cycles, and discomfort with scope ambiguity result in half-hearted implementations that do not deliver full value.
• Customerphobia: Insurers frequently rely on indirect feedback through questionnaires or substitute customers rather than engaging directly with end customers. This detachment hinders the ability to innovate and respond effectively to real customer needs.

Moving Beyond Agile

To overcome these hurdles, the insurance industry has started to evolve beyond traditional agile frameworks. This means developing a more holistic approach that integrates agile principles into the very fabric of the organisation, from leadership to customer engagement. Here are some steps to consider:

• Cultural Shift: Foster a culture that values continuous learning and adaptability. Encourage teams to experiment, fail fast, and iterate based on direct customer feedback.
• Strategic Alignment: Ensure that agile practices are not just a bottom-up initiative but are supported by strategic alignment at the top. This involves clear communication of goals, priorities, and expectations from leadership.
• Customer-Centricity: Place the customer at the heart of all decisions. Move beyond surveys and proxies to engage directly with customers, understand their needs, and tailor products and services accordingly.
• Flexible Funding and Resource Allocation: Adopt more flexible funding models that allow for adaptive planning and resource allocation. This enables teams to respond swiftly to changing market conditions and customer needs.

Engaging with ‘Beyond Agile’

Reflecting on these insights, organisations are encouraged to ask themselves: What does the concept of ‘Beyond Agile’ mean for us? How has agile adoption impacted our culture, leadership, governance, and customer engagement? What changes are necessary to support truly agile ways of working?

By addressing these questions and embracing the principles of ‘Beyond Agile’, insurers can unlock new levels of innovation, responsiveness, and customer satisfaction. The journey may be challenging, but the rewards are substantial for those willing to commit to genuine, holistic transformation.

To find out more about agile adoption within the insurance industry, get in touch with us today.

Insights from Thomas Bell, UK Transformation Lead at Projective Group, and Paulo Cuomo, Executive Director at Gallagher Re, presented at TINtech 2024.

About Projective Group

We are recognised within the industry as a complete solutions provider, partnering with clients in Financial Services to provide resolutions that are both holistic and pragmatic.  We have evolved to become a trusted partner for companies that want to thrive and prosper in an ever-changing Financial Services landscape.

Established in 2006, Projective Group is a leading Financial Services change specialist.