Future of Insurance Industry - diversity, inclusion, human resources, management keynote for Swiss Re


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Impact of workplace diversity and inclusion on insurance underwriting, risk management, customer insight and loyalty, recruitment, retention and team motivation. Key human resource issues relating to gender and women in leadership, career paths, fighting discrimination and prejudice, ageism, retirement issues, sexism, racism, homophobia and ethnicity / language / cultural barriers. Patrick Dixon keynote lecture on diversity for Swiss Re and leaders of Swiss insurance industry.

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Future of Insurance Industry - diversity, inclusion, human resources, management keynote for Swiss Re

  1. 1. Dr Patrick Dixon Chairman Global Change Ltd Why Diversity Matters to Future of Insurance Industry
  2. 2. Patrick Dixon is Chairman of Global Change Ltd, author of 15 books and has been ranked one of the 20 most influential business thinkers alive today (Thinkers 50), conference keynote speaker on global trends, strategy, leadership. This keynote on diversity and insurance industry (Swiss Re) >500 videos of Keynotes http://www.youtube.com/pjvdixon Over 4 million views Dixon’s Futurist Website: http://www.globalchange.com 14 million unique visitors
  3. 3. TRENDS                                                                                                              STRATEGY   FORESIGHT                                                                                                INSIGHT  
  4. 4. do things you really believe in Life  is  Short  
  5. 5. Why  I  believe   in  insurance    
  6. 6.      Insurance:  Confusing  Messages —Marke&ng:  We  are  here  to  protect  your  family,   to  pay  out  generously  and  quickly  if  something   happens  to  you,  giving  you  peace  of  mind  at  a   fair  price.    We  believe  in  the  value  of  what  we  do   for  you. —Investor  Rela&ons:  Our  mission  is  to  make   shareholders  as  much  wealth  as  we  can  without   breaking  the  law  and  landing  up  in  prison.  We   raise  life  insurance  premiums  as  high  as  we  can   get  away  with,  and  pay  out  as  liBle  as  possible.  
  7. 7. Wild  Cards:  Risk  Management Low probability, high impact events
  8. 8. WGP  1980-­‐2013  (%,constant  prices) confidence returning
  9. 9. EU  GDP  1980-­‐2013   (%,constant  prices)  
  10. 10. Vietnam  GDP  1985-­‐2011  
  11. 11. >40% WDP by 2015 — IMF - adjusted for Purchasing Power Parity
  12. 12. 22
  13. 13. 23
  14. 14. • Click  to  edit  Master  text  styles
  15. 15. • Click  to  edit  Master  text  styles
  16. 16. The future is about EMOTION Diversity = Predictability
  17. 17. Passions Change Demands for more sustainable, socially responsible and ethically managed business
  18. 18. Understanding   how  people   FEEL
  19. 19. 31
  20. 20. 90%  web  customers   lost  in  seconds  
  21. 21. Diversity  in   workplace  leads   to  diversity  in   marketplace
  22. 22. 300 million move to cities in China and 475 million to cities in Africa by 2025 Pollution of Air and Water
  23. 23. Europe Dying 4 couples to produce single great-grand child Stop Ageing
  24. 24. 75% of all US and UK wealth owned by those over 65 - but many need to work
  25. 25. Slow or no ageing is a reality in animals Impact on average EU retirement age of 60 • Rockfish, Turtles, some Whales • No signs of getting old
  26. 26. Understanding   how  people   FEEL  about   their  workplace  
  27. 27. Corporate Values Help Recruitment • 82% would not work for company whose values they objected to • 59% work for a company because they believe in it’s values Values are about responsibility and care
  28. 28. 1  trillion pages  a   month
  29. 29. Online HR Challenges • xxxxx is like working for that two-faced, back-stabbing "so-called" friend you wish you had neve... Read More • Just to give an overall perspective. I am trying hard not to EVER buy a product from this company a... Read More • I am quite disappointed in the culture and diversity at xxxxx. The culture is similar to a popu... Read More
  30. 30. ReputaZon  for   hiring  WHITE   Americans  leading   to  lawsuits
  31. 31. Coca  Cola  Diversity  Awards
  32. 32. Teams  in  top  half  of   Engagement 86% more likely to have better customer metrics 70% more likely to have low staff turnover 70% more likely to be highly productive 44% more likely to be profitable — 10 million surveyed by Gallup
  33. 33. Diversity  gives  more  chances   answers  to  complex  problems
  34. 34. Talent, skills, experience, language shortages
  35. 35. Diversity  Benefits As  with  Sustainability,  Diversity  started  as  a   social  issue,  and  developed  as  a  business  case  -­‐   innovaZon,  compeZZve  advantage Forbes  study  of  321  companies  with  more  than   $500  million  in  revenue,  85%  agree    that   diversity  is  key  to  encouraging  innovaHon.
  36. 36. Diversity  linked  to  higher   sales,  market  share  and  profits
  37. 37. Diverse  teams  can  mean  less  loyalty,   lower  moZvaZon,  higher  sick  leave,   conflict,  mis-­‐communicaZon
  38. 38. Expect many mergers and acquisitions even
  39. 39. Diversity  Benefits Be^er  range  of  skills,  backgrounds,  experience Be^er  understanding  of  customers  and  local  or  global  markets Be^er  talent  pool  to  draw  from Be^er  team  morale  /  corporate  pride Be^er  corporate  image
  40. 40. Cost  of  Workplace   DiscriminaZon $64bn  a  year  in  US  according  to  Centre  for  American  Progress  -­‐  partly  due  to  turnover  of  2   million  people  a  year  because  of  discriminaZon Fedex  paid  $3m  to  se^le  cases  in  15  states  of  race  and  gender  bias  in  recruitment 40%  of  gay  and  lesbian  employees  say  they  face  harrassment  and  discriminaZon  at  work
  41. 41. Diversity  Challenges Worse  internal  communicaZon Worse  sense  of  belonging Worse  staff  turnover Worse  ability  to  make  rapid  decisions
  42. 42. Reproduce  own  image Tend  to  recruit  people  with  familiar  name,  voice,  accent,  personality,  culture,  appearance
  43. 43. GENDER  
  44. 44. Female Crisis • Most sales to women • 60% US graduates • 40% primary earners • Most women leave corporations early • Solve talent shortage UrbanTribal
  45. 45. Women outperform men and then disappear • High School, College, and workplace • Lead <3% of Fortune 1000 companies • Are 10% EU boards • More board members – 42% higher sales – 66% higher ROI • DBSI
  46. 46. Toxic Testosterone Culture
  47. 47. • Young children • Dependent parents • Double careers • Double shift patterns • Divorce / separation Complex Homes
  48. 48. • 12% of mothers want to work full time • 31% do not want to work outside home • 28% men full time jobs want part time • Most fathers want more time with children • 2009 UK Survey Parents and Work
  49. 49. Life-Life Balance
  50. 50. Balance is usually about People
  51. 51. Better Flexibility • Hours –part-time, job-sharing, flexible start and finish times or shorter working weeks • Leave – extra unpaid leave for study, bereavement, parental care, voluntary • Location – working from home, opportunity to transfer to a different area
  52. 52. RACE  
  53. 53. Different in Emerging Nations
  54. 54. “People  of  Colour”-­‐  US By 2050, no ethnic majority in US By 2050 new immigrants and their children will account for 83% of growth in workforce People of colour own 22% of U.S. businesses Women of colour own 1.9 million firms, with $165 billion in revenue annually and 1.2m staff People of color and women only represent about 15% and 18% of corporate boards among the senior management of Fortune 500 companies
  55. 55. US  Race  DiscriminaZon The  average  unemployment  rate  for  Blacks  is  double  that  for  Whites Unemployment  rate  for  White  graduates  =  8.4%  but  19%  for  Black  graduates 95%  of  the  unemployment  rate  gap  is  due  to  higher  probability  of  losing  work DiscriminaHon  on  ancestry,  color,  hair  texture,  facial  features,  name,  accent  or   manner  of  speech,  hair  style  (e.g.  locks  or  a  goatee).  Couch  and  Fairlie
  56. 56. EU  race  discriminaZon Rise  of  xenophobia  across  EU HosZle  reacZons  to  Italy’s  first  black  cabinet  minister  etc Italy,  Slovakia,  Hungary  NB  discrominaZon  against  Roma  people
  57. 57. Ethnic  Issues  in  UK  Workplace 12%  of  working  age  are  ethnic  minoriHes 20%  unemployment  rate  in  Black  workers 7.6%  unemployment  rate  in  White  workers 20%  unemployment  rate  in  white  youths 44%  unemployment  rate  in  black  youths 1  in  6  UK-­‐domiciled  students  ethnic  groups 1  in  15  ethnic  graduates  are  in  management
  58. 58. UK  Race  DiscriminaZon Many job applicants change their name or appearance to try to overcome prejudices better chance of job interview / offer
  59. 59. UK  Race  DiscriminaZon Only 1% of principals of colleges in Britain are from ethnic minorities -16% of students
  60. 60. Benefit  of  Quotas  ? Black  Asian  and  Minority  Ethnic  People  in  UK 1  in  4  at  school  -­‐  1  in  8  in  workforce  -­‐    1  in  16  on  FTSE100  boards
  61. 61. Diversity  Blindness  in  White  Men 700 managers at companies rated their managers for encouraging diversity in Alcoa, Bank of America, Intel, Exelon, Marsh & McLennan Companies, PepsiCo, Wal-Mart and PWC etc 45% percent of white men gave boss a positive rating 21% percent of women and people of color agreed Wide gaps in the perception of white men's abilities to coach and improve the performance of diverse employees; build strong, diverse teams; promote diverse talent on merit; and include diverse voices in decision making.
  62. 62. AGE  
  63. 63. Jim  Clements  is  100  years  old
  64. 64. Beyond  ReZrement What is your corporate position on retirement age? Laws vary - challenge to take a position Same with pollution standards between nations What is “moral high ground” ? Does it change when 40% of youth are out of work?
  66. 66. Steps  to  Diversity: Develop  hiring  strategy  to  make  workforce   look  like  community  you  operate  in Keeping  new  hires  may  be  harder  than   recruitment  -­‐  helping  them  to  belong Affinity  groups  etc
  67. 67. Steps  to  Diversity: Use  community  organisaZons  in  hiring Be  culturally  sensiZve  in  descibing  company
  68. 68. White  men  “drive  Diversity” White  men  run  diversity  programs  at  big  US  employers  such   as  Coca  Cola,  PWC  and  Southern  Co.'s  Georgia  Power  unit.  
  69. 69. Benefit  of  Quotas   eg  Women  ? • 50%  of  countries  have  some  kind  of  electoral  quotas  for   women  in  Parliament • only  23.2%  of  MPs  in  the  EU  are  women. • Only  3.2%  of  the  Presidents  or  Chairs  of  the  largest   publically-­‐listed  companies  in  EU  are  women • Only  13.7%  of  their  board  members  are  women
  70. 70. Start  at  the  Top Modelling  right  altudes Absolute  commitment  to  diversity Clear  targets  -­‐  concrete  aspiraZons Aggressive  steps  to  achieve RecruiZng  -­‐  mentoring  -­‐  encouraging A^acking  insZtuZonal  prejudice  and  barriers Agents  for  change  in  wider  society
  71. 71. •Individuals •Family •Corporation •Community •WideWorld Making Life Better
  72. 72. Dr Patrick Dixon Chairman Global Change Ltd Why Diversity Matters to Future of Insurance Industry