What is the formula for organisational effectiveness?

There is a pronounced lack of research into organisational effectiveness in the life insurance industry. Bryce Shepherd, of PartnerRe Asia Pacific, revealed that despite the US life insurance industry contributing more to US GDP than the banking sector, there were only 12 research articles within the last ten years on organisational effectiveness connected to the life insurance industry.

This scarceness in understanding formed the starting point for his research into organisational effectiveness. Comprising 14 interviews with C-suite executives across Europe and Asia, the research found that employees, company leadership and culture were the main factors driving organisational effectiveness.

Bryce’s research found reducing groupthink, increasing diversity and investing in transformative leadership skills were key factors in improving organisational effectiveness.

A later poll of the audience’s views on actuarial groupthink within companies found 42% thought mandatory secondments to other areas of the company would help solve the issue. 27% thought more outsiders should be promoted to leadership positions to give a louder voice for alternative thinkers.

Actuaries Institute Senior Vice President, Annette King, noted that employees made better decisions in their roles if they understood the challenges of different areas of the company, such as marketing or distribution.

“It is important to acknowledge that the mathematical background of many actuaries – where you are either right or wrong – can weigh on efforts to challenge actuarial groupthink,” Alissa Holz, of RGA Reinsurance, told the audience.

Alissa has heard many anecdotes of people thinking that if someone challenges them, that in effect questions their professionalism and if they have the correct answer.

“There is still that underlying current in the actuarial field,” Alissa said.

Jas Singh, of SKL Actuarial, nominated the mass retention of talent as a key driving factor behind organisational effectiveness.

“The companies that have gone from strength to strength – they have vision for talent development, the ones that are going nowhere don’t care,” Jas told the audience.

Annette supported Jas’ view, saying that while individual skillsets are critical, the dynamic within teams are the difference between an OK team and a winning team in the industry.

The discussion also looked at how to deal with challenges the industry faces, such as APRA’s intervention into disability income.

Alissa advised that APRA’s intervention should induce leaders to look at the complexity of the whole insurance value chain, and examine each part of the industry in detail. In particular, how pricing and products plays out in terms of actual claims, such as how a disabled individual fits into a definition.

A second poll found 61% of the audience believed it was the company’s responsibility to change internal policies and incentives to improve organisational effectiveness, surprising some of the presenters.

Jas told the audience that although the organisation itself was responsible to improve organisational effectiveness, the professional body itself could shape and change it.

“Following the money is a short-cut, not a long-term winner,” Jas said.

Alissa said individuals, companies, and the profession were all responsible for driving organisational effectiveness in some way.

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