Insurance sector overly confident: CMI

Data released today by the Chartered Management Institute suggests that organisations in the insurance sector have a misplaced confidence about their ability to cope with uncertainty and change.

The findings also identify the key challenge currently facing employers, but suggest that little is being done to address it.

Demonstrating a worrying level of over-confidence, the survey shows that, of the top concerns raised, only 47 % of organisations in the insurance sector believe that ‘managing risks’ is most important. Just 35 % suggest that ‘developing talent’ is a significant issue, despite nearly two-thirds (61 %) admitting that skills and talent management is the key challenge currently facing UK employers.

And although evidence exists to show that the proportion of failed IT projects is 74 %, these latest findings reveal that only 23 % in the sector think it is a priority to ‘keep abreast of technological change’. Worse still, just 11 % believe effective use of ‘IT and communications’ is one of the biggest challenges for the UK.

“Questions need to be asked about how UK organisations will be able to manage in the future, if they fail to address key operational issues.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute

One-third (33 %) in the insurance sector also think that ‘prioritising the reputation’ of their organisation is important for long-term business success. Only 42 % view ‘managing the impact of regulation’ as a necessity – a surprising response given the importance of corporate governance.

Commenting on the findings, Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, said: “Questions need to be asked about how UK organisations will be able to manage in the future, if they fail to address key operational issues. Rather than simply focusing on ‘what should be done today’ the inability to plan properly might lead to questions of a more critical nature; ‘what opportunities have I missed?’ or worse, ‘how did the organisation not see that coming?’.”

The survey also shows that innovation is a low priority amongst organisations in the sector. Less than 1 in 5 (16 %) believe the creativity and inventiveness is a top challenge and just 18 % argue that it is important in today’s working environment. Although this figure increases when respondents look at business priorities in 2013, at 23 % it is still worryingly low.