The effect of the Fourth Industrial Revolution on employment in the insurance sector in Cape Town, South Africa

Abstract

Introduction: Digitalisation, automation, robotics, Artificial Intelligence and machine learning have transformed the workplace. Tasks by humans are automated with higher efficiency. The 4th IR impacts business models across industries, causing disruption and mismatch between supply and demand in the workplace. New forms of employment and occupations are expected to emerge. Problem statement: South Africa has a significant skills shortage due to failures in its education system, limiting the supply of managers, researchers and staff needed for the 4th IR. Despite the literature available on the 4th IR, there is still a gap on the effect of the 4th IR on employment in South Africa, and in the insurance sector in South Africa in particular. Research question: • What is the effect of the 4th IR on employment in the insurance sectors? • How can the 4th IR affect the future of work? Aim of research: In this study, the researcher aims to explore the effect of the 4th IR on employment within the insurance sector in Cape Town, South Africa. Findings and conclusions: The results indicate that various factors in the form of opportunities and challenges can influence the implementation of the 4th IR in the insurance sectors. Factors such as not having the applicable skills in the company can have a negative effect on the digital transformation strategy of the company; IT infrastructure barriers limiting the rollout of 4th IR; vision and strategy as important for pursuing 4th IR transformation; and correctly implemented 4th IR has the potential to improve productivity. The majority of participants do think the implementation of 4th IR will have positive economic outcomes within the insurance sector as it will create new markets and growth opportunities and create new financial products and services, as discussed in further detail in the study. Ethics: The study adhered to strong ethics to ensure that integrity and moral principles were followed throughout, as required by CPUT. Consent was obtained in writing from the companies as well as the research participants.