H E A L T H W E A L T H C A R E E R

T H E I N S U R A N C E

TA L E N T C R I S I S :

R E S P O N D I N G

E F F E C T I V E LY

Presenters:

DUANE BOLLERT

RICK GUZZO

ILENE SISCOVICK

December 8, 2015

© MERCER 2015 2

B U S I N E S S A N D W O R K F O R C E C H A L L E N G E S

I N T H E G L O B A L I N S U R A N C E I N D U S T R Y

ACE Chubb NY Life

AEGON Generali Ping An

AIA Group Great-West Life Sun Life

AIG Manulife Swiss Re

Allianz MassMutual Travelers

AXA Mitsui Life Zurich

China Taiping Munich Re

S T U D Y P A R T I C I P A N T S

© MERCER 2015 3

S I X C O M M O N C H A L L E N G E S

3

Technology/Big Data • Mobile and web-based

services

• Predictive analytics

• Legacy technologies

Growth • Low growth in mature

markets

• High growth in emerging

markets

Regulation • Multiple jurisdictions

• Changing rules

Customer Focus • Comprehensive

customer relationships

• Ease of doing business

Alternative

Investments • Low interest rates

• More complex portfolios

• Nontraditional assets

Leadership

Development • Adequate talent pipeline

© MERCER 2015 4

T A L E N T M A N A G E M E N T

P A T H W A Y S T O S U C C E S S

Embracing

Nontraditional

Talent

Adapting Talent

Strategies

More flexible and adaptable organizations

have the best chance to succeed

Increasing

Analytical

Capabilities

© MERCER 2015 5

2 5 P A R T I C I P A T I N G I N S U R A N C E C O M P A N I E S

C A N A D A

5

© MERCER 2015 6

E M B R A C I N G N O N T R A D I T I O N A L T A L E N T

D I F F I C U L T I E S F O R I N S U R E R S

Source: Mercer, “Talent Opportunities in Insurance: Strengthening the Insurance Sector Workforce” 2014

Factors contributing to a focus on hiring from within the industry

Unknown industry brand

Resistant managers

Recruitment processes and tools that favor industry experience

Learning and development not equipped to train out-of-sector,

experienced hires

© MERCER 2015 7

I D E N T I F Y I N G S K I L L - E Q U I V A L E N T O C C U P A T I O N S

Convert NOC to O*NET

Extract knowledge

& skills data

Convert O*NET to NOC

Convert the matched O*NET

occupations back to NOC

occupations

Extract information from

O*NET about knowledge and skill

requirements of the four key

occupations

Identify other O*NET

occupations with matching

knowledge and

skill requirements

Convert four key

occupations from their NOC code

to the corresponding O*NET code

NOC is the nationally-accepted taxonomy of occupations in the

Canadian labor market; O*NET is the comparable US taxonomy

7

© MERCER 2015 8

I D E N T I F Y I N G S K I L L - E Q U I V A L E N T O C C U P A T I O N S

0

5

10

15

20

Actuary Underwiter Adjustor Data Science

Experts' Guess Actual

Source: Mercer, “Talent Opportunities in Insurance: Strengthening the Insurance Sector Workforce” 2014 8

© MERCER 2015 9

E Q U I V A L E N T O C C U P A T I O N S : U N D E R W R I T E R S

S O U R C E S O F E X P E R I E N C E D T A L E N T

• Agricultural

representatives,

consultants and specialists

• Biologists and related

scientists

• College and other

vocational instructors

Knowledge

Requirements

• Specialty Knowledge

• High Level of

Proficiency in English

Language

Basic Skill

Requirements

• Reading

Comprehension

• Active Listening

Cross-functional

Skill Requirements

• Judgment and

Decision Making

• Engineering inspectors

and regulatory officers

• Financial sales

representatives

• Human resources

professionals

• Licensed nurses, nursing

coordinators, supervisors

• Senior managers in

health, education, social

and community services

© MERCER 2015 10

S U RV E Y E D 1 6 4 C O M PA N I E S F R O M 2 8 C O U N T R I E S

1 . 7 M I L L I O N E M P L O Y E E S , I N C L U D I N G 6 8 0 , 0 0 0 W O M E N

© MERCER 2015 11

T A L E N T F L O W S B Y G E N D E R I N I N S U R A N C E

Source: Mercer, “When Women Thrive, Businesses Thrive”, 2015

F 2% ▲ M 4%

F 5% ▲ M 7%

F 5% ▲ M 5%

F 6% ▲ M 9%

Overall: F 60% M 40%

Executive

Senior

Manager

Manager

Professional

Support Staff

Career Level Total Hires Total Exits Representation by Career Level

F 6%

M 7%

F 5%

M 7%

F 5%

M 7%

F 10%

M 11%

F 17%

M 35%

F 14%

M 7%

F 15%

M 9%

F 15%

M 10%

F 10%

M 11%

F 16%

M 24%

51% 49%

74% 26%

56% 44%

40% 60%

28% 72%

11

© MERCER 2015 12

R E P R E S E N TAT I O N O F W O M E N I N E X E C U T I V E P O S I T I O N S

P R O J E C T E D T O D E C L I N E

Baseline

All equal

Equal hiring

Equal turnover

Equal promotion

Source: Mercer, “When Women Thrive, Businesses Thrive”, 2015 12

© MERCER 2015 13

W O M E N I N E X E C U T I V E P O S I T I O N S

C U R R E N T A N D P R O J E C T E D , A L L I N D U S T R I E S

2014

20240

10

20

30

40

GlobalNorth Am

Latin Am

13

© MERCER 2015 14

I N S U R E R S T O I N V E S T M O R E I N T H E I R P E O P L E

What level of talent investment

do you expect to make in the future

in order to meet the current business challenges?

Less than

current

investment

5%

Remain

the same

33%

More than

current

investment

62%

Source: Mercer Global Insurance Industry Research 2015

© MERCER 2015 15

A S H I F T I N T H I N K I N G

F r o m t r a d i t i o n a l v e r t i c a l

c a r e e r l a d d e r s o f f e r e d

b y t h e o r g a n i z a t i o n …

… To n o n - l i n e a r

c a r e e r “ c l i m b i n g w a l l s ”

p r o a c t i v e l y m a n a g e d

b y t h e i n d i v i d u a l

© MERCER 2015 16

R E S P O N D I N G T O T H E T A L E N T C R I S I S I N T H E

E R A O F T H E I N D I V I D U A L

C L I M AT E O F R E AL - T I M E P O S T I N G S

F O C U S O N T H E F U T U R E , N O T T H E P AS T

“ O N E S I Z E F I T S O N E ” C AR E E R S

M O V E AW AY F R O M S T AT I C P R O C E S S E S

© MERCER 2015 17

How do I get to

where I want to

go?

Where can I

move?

How am I

doing now?

What are the

expectations of

roles I’m

interested in?

K E Y Q U E S T I O N S I N A N E M P L O Y E E ’ S M I N D

© MERCER 2015 18

Employees want to explore opportunities to move

vertically and horizontally within their organization and

know how to realize their ambition.

E M P L O Y E E P E R S P E C T I V E :

V I S I B I L I T Y O F O P P O R T U N I T I E S

A N D S U P P O R T T O G E T T H E R E

© MERCER 2015 19

C A R E E R F R A M E W O R K A S A F O U N D A T I O N

The purpose of the career framework is to build workforce capabilities through proactive and deliberate career

management strategies.

Articulate a career philosophy that

supports strategic goals

Develop/align job families, competencies, and

accountabilities across the organization

Define critical experiences, knowledge, and

skills necessary for career progression

Identify flexible career paths not only within

functions but across the organization

Empower managers to support employees

through effective conversations

Empower employees to actively

manage their career choices

Use your Career Framework to anchor

other HR processes

© MERCER 2015 20

The right user experience can help employees envision their career, pragmatically

plan how to make it happen, and support managers in their discussions.

W H A T T H I S C O U L D L O O K L I K E

“Click and Explore” Tool

• “Plug and play” stand-alone tool based on a clickable PowerPoint, often with voice over, to bring careers to life.

• Suitable for employees and managers.

• Intuitive menus and buttons to self-navigate and explore .

• Easily accessible from intranet or LMS.

Career App • Employee-focused experience built for mobility.

• Can be accessed on PC or mobile device.

• Enables employees to explore roles and paths and save their chosen paths.

• Opportunity to conduct self-assessment to build a tailored plan for growth.

• Able to link to HRIS data.

Belong/Web Portal • A comprehensive website with a potential for full

integration with HR systems and data.

• Added interactivity that can be embedded for a more custom experience; potential to extend content beyond careers into health and wealth management.

© MERCER 2015 21

Seek holistic solutions

T R A N S L A T I N G F I N D I N G S I N T O A C T I O N

Provide customized career experiences and training for different talent segments

Adapt talent management strategies

Realize unique value

Do less benchmarking….

Find your own path

RESEARCH THEMES SOLUTIONS

Coach leaders to drive success Train managers on how to build a more flexible organization

Embrace nontraditional talent

Build analytical capabilities

Use multiple levers to build a more flexible

and adaptable organization

Use disciplined workforce analytics and predictive modeling to identify problems and measure results

© MERCER 2015 22

Questions?

© MERCER 2015 23

I M P O R T A N T N O T I C E S

• References to Mercer shall be construed to include Mercer LLC and/or its associated companies.

© 2014 Mercer LLC. All rights reserved.

• This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to

whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any

other person or entity without Mercer's prior written permission.

• The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change

without notice. They are not intended to convey any guarantees as to the future performance of the investment products,

asset classes or capital markets discussed. Past performance does not guarantee future results. Mercer's ratings do not

constitute individualized investment advice.

• This does not contain investment advice relating to your particular circumstances. No investment decision should be made

based on this information without first obtaining appropriate professional advice and considering your circumstances.

• Information contained herein has been obtained from a range of third party sources. While the information is believed to

be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to

the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential, or

incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.

• Investment advisory services provided by Mercer Investment Consulting, Inc.

© MERCER 2015 24 24