Human Capital Strategies in Insurance Brokerage
Global insurance brokerages are now offering what’s called human capital strategies to their clients. These approaches help businesses make the best use of their most costly and risky asset: their employees. With economic and political instability, coupled with rising workplace issues such as anxiety and depression, brokers may find opportunities in offering risk advice to Small and Medium-sized Enterprises (SMEs) that incorporates human capital strategies.
Major brokerages like Aon, Marsh, Lockton, and WTW have already developed these offerings. They help clients deal with a wide range of challenges relevant to a firm’s risk management and insurance costs. The primary objective, according to these global brokers, is to create a healthier, more engaged, and productive workforce.
Human Capital Strategies at Major Brokerages
For instance, Lockton offers cultural consulting, internal communication strategies, and health initiatives under its human capital “solutions” banner. Marsh, another global broker, focuses on supply chains as part of its “people risk management.” According to Amy Barnes, Marsh’s head of climate and sustainability, supply chain management has grown significantly over the last five years, from US$15.58 billion to US$24.6 billion. An average car manufacturer, she noted, could have as many as 18,000 suppliers. For these firms, people risks are a crucial part of a “confluence of many types of risk.”
Employee wellbeing is another key focus area for human capital strategies. WTW has developed a “holistic wellbeing strategy” as part of its human capital offering. The brokerage recently listed four actions firms can take to promote workplace wellbeing:
- Prioritise vulnerable employees
- Listen to employees with the help of data analytics
- Develop roadmaps that align wellbeing investments with broader business goals
- Leverage high-tech and high-touch solutions for personalised wellbeing experiences
Five Human Talent Challenges Brokers Should Understand
Puneet Swani, Aon’s head of talent solutions for the Asia Pacific, said that a human capital strategy combines performance management, talent management, reward strategy, and recruitment strategy. Based on his firm’s research and global client interactions, Swani identified five human talent trends that are indicative of the challenges brokers could increase their understanding of:
- Managing Burnout: Many organisations have experienced transformations due to new technology, ways of working, and business models prompted by the COVID-19 pandemic. As a result, managing employee burnout has become a top priority.
- Hybrid Working Models: The rise of remote working has raised challenges around maintaining important work practices. Many firms are currently trying to strike the right balance between hybrid, remote working, and on-site work.
- Redefining Work Rewards: Organisations are now looking at rewards more holistically, beyond just compensation and benefits. This includes career development, skills development, job redesigning, financial education, and health benefits.
- Future Work Skills: With the skills required in the future likely to be different from those needed currently, firms are trying to figure out how to reward employees for acquiring these future skills.
- AI in Human Resources: Many firms are starting to use artificial intelligence (AI) for recruitment and reward purposes. However, ethical concerns, such as avoiding biases in AI technology, present challenges.
These trends highlight the potential for brokers to offer valuable insights and services to their clients, helping them navigate the complex landscape of human capital management.
