The middle child breaks up fights, mediates disputes, and smooths the differences between older and younger siblings. They carry the weight of family responsibilities and often don’t get the recognition they deserve.

The parallels to corporate middle managers are uncanny. Middle managers today are the switchboard operators between C-suite directives and operational execution by frontline staff. They manage up and down. They reinterpret signals from both directions in an increasingly complex environment. They must think like a CEO and a front-line professional. Yet, as they’re often the forgotten or overlooked ones, they’re typically the first to go in a downsizing.

Middle managers in the insurance sector are pivotal, tasked with navigating the complex dynamics of today’s volatile, uncertain, complex and ambiguous (aka VUCA) business environment. This role has dramatically evolved from pre-COVID times to the present. It all reflects significant shifts in technological adoption, workforce management and strategic priorities. Let’s explore these transitions and strategies to empower managers to thrive.

The World Gets Weird

Over the past four years, the pace of change seems to have accelerated with profound effects on business. Middle management has always been a challenging place to live, but pre-2020 there was a fairly predictable and routine pace of business. Work then was a place to which people regularly commuted; today, it resembles more of a thing we do, from anywhere. When people were at the office, at least there were regular communications up and down the organizational chart. Life and work primarily were in separate boxes. It felt more simple—at least clearer.

Starting in 2020, stormy seas began to blow the steady S.S. Business-as-Usual off course in a new, unfamiliar direction. It was precipitated by four simultaneous meta-events:

1. A disruptive global pandemic that decimated supply chains and global trade.
2. Social, political and economic disruption that found its way into the workplace as employees reprioritized their work-life balance.
3. New technologies like AI and advanced analytics that got ahead of users.
4. Macroeconomic volatility (inflation, rising debt, etc.) that has everyone wondering if things are getting better or worse.

Historically, middle managers were essential conduits between strategic directives from senior management and operational execution by front-line staff. And that hasn’t changed. But the meta-events have magnified their challenges, requiring deft, adaptable sailing in high seas. It’s exhausting. They’re burning out. Not only must they be visionary and set a course for strategic direction, but they also need to lead on-the-ground tactical skills to make sure the works gets done.

Since 2020, there is a workplace expectation that managers need to be leaders and leaders need to be managers. They have to do everything! When the rank and file is asked, “Who do you go to for corporation information?” they say, “My manager.” (Not the annual report or news release.) And middle managers have to translate the intentions of transactional leaders, who methodically manage by objectives and are more common in insurance, and transformational leaders, who are all about embracing change and frequent communications. (See related sidebar, Transactional vs. Transformational Leaders)

You have a crushing situation here, given new dynamics in the workplace. The middle manager is the fulcrum, the pressure point, the atom that’s being split. They’re being squashed in a vice and put through a pasta machine.

Here are three areas to consider when thinking about the plight of the middle manager—and ensuring they don’t sail off into oblivion.

Digital Transformation and Customer Engagement

If you were the middle child, think about how hard it was to get your stupid little brother to do anything, especially because he thought he knew more about the latest technology (which he probably did). Like the middle child, middle managers have to adapt to the latest gizmos and get their whole team on board.

Pre-COVID, digital transformation was making inroads into the insurance sector, with firms cautiously exploring InsurTech tools and platforms. However, the trends have accelerated rapidly, making digital agility a cornerstone of business survival and success. Middle managers have led the adoption of technologies such as blockchain for claims processing, AI for customer service and advanced data analytics for risk assessment. These technologies streamline operations and open new avenues for customer engagement and service delivery, placing additional demands on managers to upskill their teams and foster a culture of continuous innovation.

Cool, right?

Well, there are challenges.

Integrating new technologies like AI, blockchain and advanced analytics into existing systems can be complex and resource intensive. The sheer volume of data available can be overwhelming. Middle managers must discern which data is relevant and actionable for their teams. Ensuring that teams are proficient in using new digital tools and interpreting data insights requires ongoing training and development. As technology evolves, customer expectations for personalized and seamless experiences increase. Meeting these demands while maintaining operational efficiency is challenging.

Middle managers today need to achieve a new level of collaboration with the IT folks to ensure smooth integration of new technologies. Pilot programs are a proven winner. They can test and refine these technologies before full-scale implementation. Managers should consider advanced analytics tools specifically designed for the insurance industry. When they do, they leverage these tools to interpret data accurately and make informed decisions.

Related articles: How Underwriters Win Business With Data and ML at AXA XL; AI Leadership at All Levels

They should look at the new predictive analytic tools to enhance risk assessment, customer profiling and product customization. Providing regular training and development in these areas for all employees (C suite, mid-level and front-line) that focus on digital tools and data analytics can encourage a culture of continuous learning where employees are motivated to enhance their digital and analytical skills.

Of course, data tools are the most useful in customer-centric strategies that improve engagement and satisfaction. By establishing hands-on innovation labs to experiment with new technologies and processes, middle managers can foster a culture of innovation and continuous improvement, allowing teams to stay ahead of technological trends.

Managing Remote Dynamics

The sudden shift to remote work was a seismic change for the insurance industry, traditionally reliant on in-person operations. Middle managers had to quickly pivot, redesigning workflows to accommodate remote teams and ensuring that productivity and team cohesion were maintained. While studies show remote work actually improves productivity on an individual basis, camaraderie, team cohesion and creativity all suffer. And these are the very things that motivate employees to stick around and not jump to the next company. Managers have to find a way to maintain productivity and motivate employees to be the best they can be.

Successful managers are intentional about implementing communication tools to foster a virtual culture of collaboration and inclusivity. Case studies from leading firms demonstrate how these strategies have led to improved operational efficiency and employee satisfaction in a fully remote environment.

Transitioning to remote work and hybrid work requires redesigning workflows to ensure that productivity remains high. This often involves implementing new communication and project management tools and ensuring their effective use.

To manage this “remote” dynamic, middle managers can:

• Schedule frequent virtual check-ins and team meetings to maintain communication and team cohesion.
• Use video conferencing for face-to-face interaction and instant messaging for quick updates.
• Use industry-specific communication platforms that integrate with existing insurance software. Tools like Microsoft Teams, Slack and Zoom, along with CRM systems, can streamline communication and collaboration.
• Organize virtual team-building exercises and social events. It doesn’t have to be in person to be fun. A little creativity goes a long way and can foster relationships and camaraderie among remote team members. This can include virtual coffee breaks, online games or collaborative projects.

Balancing Employee Expectations and Fostering Engagement

Today’s workforce is increasingly diverse, not just in terms of demographics but also in expectations and working styles, particularly with the entry of Gen Z (age 28 or younger) into the workplace. This is a large generation, now representing more than one in four workers overall and outnumbering baby boomer workers, according to some estimates.

Younger employees bring different values and preferences, emphasizing flexibility, digital nativity, and a strong alignment with their employers’ ethical and social values. Middle managers are asked to integrate these new workforce dynamics into the existing corporate culture, requiring a delicate balancing act to align diverse expectations without alienating any group. The environment requires innovative engagement strategies such as flexible working arrangements, enhanced focus on work-life balance, and practices to foster a culture of inclusivity and diversity.

Keeping employees engaged and motivated is crucial, particularly in a competitive job market. Middle managers must foster a positive work environment and reduce turnover.

With multiple generations in the workplace, managers must understand and cater to differing values, expectations and working styles. This can be complex and requires a nuanced approach to management that may include:

• Considering policies that support flexible work hours and remote work options, catering to diverse employee needs.
• Clearly communicating these policies to ensure all employees understand their options.
• Using employee-engagement platforms to gather feedback and tailor engagement initiatives.
• Recognizing individual contributions and celebrate team achievements to boost morale.
• Implementing programs that promote diversity and inclusion, ensuring all employees feel valued and respected.
• Offering training on cultural competency and unconscious bias to create a more inclusive workplace.

All Hail

Often considered “corporate fat,” the middle manager role is challenging—and crucial to the success of insurance organizations. In navigating complex, troubled waters, successful managers will lead with innovation, strategic vision and empathy. The future of the risk and insurance industry depends on their ability to adapt to a changing landscape, skillfully navigating their teams toward sustainable success via digital transformation, remote work dynamics, and integrating a diverse, multi-generational workforce.

All hail the middle manager!