As a headhunter, he is close to the action: An interview with Erik Wirz about change and the demands placed on managers in the insurance industry.
Erik Wirz in an interview with HZ Insurance by Bernd de Wall
In your Report, you highlight current trends and challenges in the Swiss insurance sector - why do you, as an executive search company, focus on this industry?
All of our market reports are actually based on the experience we gain through our recruitment mandates from the market players. We have done quite a lot in the last 18 months, either directly for international insurers and reinsurers or in related areas such as consultancies and technology providers.
When you work as an executive search company, you are usually in a situation where you are discussing strategy, positioning, go-to-markets, technology projects or co-operations with the client's teams. We prepare this expertise accordingly in order to provide an interesting market overview. In addition to insurance, of course, we also work in other areas such as the banking market.
About the dialogue partner
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Erik Wirz has been the founder and Managing Partner of Wirz & Partners Management Consulting AG, one of the leading executive search firms in Switzerland, for almost 16 years. |
For him, the insurance industry has great potential: headhunter Erik Wirz. |
It is often said that digitalisation and AI will revolutionise the industry. What does this mean for jobs and job profiles in the insurance industry?
It's a bit like the invention of the steam engine or electricity: it's not that AI will take away our jobs, either in insurance or elsewhere. It is a work tool like a laptop or a tablet and if AI is used correctly, it will improve efficiency enormously. If we look at the core processes of an insurance company and consider the business case for AI, then at first glance it is of course an ‘AI El Dorado’ - because insurance companies are sitting on a huge treasure trove of data.
The other side of the coin is the issue of data protection, where the ‘El Dorado’ quickly comes to an end. It's not without its challenges and of course brings with it major challenges.
The demands on managers are becoming ever greater as a result of the upheavals. What does a manager in the insurance industry need to bring to the table today?
Let's start with the Board of Directors. Ideally, the BoD today reflects the C-level at a strategic level. This means that every C-level role has a person on the BoD with a profound track record who can reflect on the topic from a strategic perspective and act as a sounding board and sparring partner.
The upheavals are strongly driven by technology, which costs a lot of money. The less guidance a company has, the greater the price it will have to pay. Gathering the right expertise at the top level is therefore a challenge - and there aren't that many people who have the know-how.
That's one side of the coin. At C-level (EXCO), I believe there needs to be a greater awareness that these technological upheavals are not just about technology, but that technology is seen as a business enabler. This is not an issue for individual departments, but affects all areas of the company - from the CEO to the CFO, the COO, the claims department and underwriting. Dealing with the changes therefore requires a cultural change and for this you have to get out of your comfort zone. The transformation must be specified from the top down and then supported by the organisation, otherwise it won't work.
"For managers, it's all about the right composition of their teams."Erik WirzThe changes are happening at breakneck speed. How can I as a manager even keep up?
The manager is not the person who has to understand the individual technological topics in detail, nor is that their job. For managers, it's all about the right composition of their teams.
On the one hand, it is important to have a diverse team in which the employees are mixed in terms of age and experience - and on the other hand, it is also important to bring employees on board who perhaps come from a different industry or are already more advanced in the subject. That broadens your own horizons. This is still rather rare in the insurance industry, but other industries are already further ahead in this respect.
As an executive search company, you specialise in top positions. Which profiles are particularly sought after in the insurance industry at the moment?
Sales is currently a very, very big topic - in other words, when it comes to optimising, structuring and supporting sales. Then, in view of the horrendous storm damage, the focus is on risk, where insurers are looking for experts to better understand, analyse and mitigate risks. Another major topic is ESG, if only because of the regulatory requirements or because business partners are insisting on proper handling.
In other words, a lot revolves around data management in connection with customer data - depending on where it is located, whether in marketing, sales or in the business units.
"Distribution is currently a very, very big issue."
Erik Wirz
Is there really a shortage of skilled labour in the insurance industry?
It's difficult for me to make a general statement. I say that there are always as many or as few good people. If the general conditions on the market are difficult due to economic developments, then top talent is even less available - as a rule, they are not on the run. For us, this manifests itself in the number of managers we have to put on a longlist until we finally reach our goal. Or to put it in simple terms: when the economy is booming, we have less work to do. If the economy is getting worse, the effort required is greater.
How can you support insurers in their search for suitable specialists and managers?
What we can offer companies is an in-depth analysis of the available market so that they don't have to go on a journey looking for something that doesn't exist. At the same time, it is also the speed with which the vacancies can then be filled. Of course, we can be more agile here and have a corresponding network.
If you weren't working as a headhunter now, would the insurance industry be an attractive alternative for you?
I think so! Insurance has a lot to do with psychology, with fear and security. Even as a child, I found this fascinating when my father would talk to his insurance advisor, who would sometimes paint horror scenarios on the wall of what could happen in life. Insurance is a very exciting environment with lots of stories. And it's a market that has enormous potential in terms of technology, but where common sense is also required. I would use my ‘déformation professionelle’ to try and incorporate the psychological and technical aspects that I am confronted with on a daily basis.
