Top 10 risks and opportunities for insurance in 2013 and beyond
In an increasingly competitive world, forecasting the future is risky. Businesses that fail to look forward will almost certainly be left behind. As the insurance industry adjusts to a new environment of low asset returns and stricter regulation, insurers have few illusions about the challenges ahead.
Our survey “Business Pulse: top 10 risks and opportunities for insurance in 2013 and beyond” reveals the current thinking and expectations of executives across the globe.
Macroeconomic trends and a slow rate of growth are viewed as the leading risks for insurance companies. Customer focus – improved distribution and product development – dominates the list of opportunities.
We intend this report to provoke discussion and debate about how to meet the challenges and opportunities that lie ahead for insurers. In their search for growth, insurance companies face a shortage of skills, data- and cyber-related threats and concerns about operational and reputational risk.
See the top 10 risks for insurance
See the top 10 opportunities for insurance
Our findings are organized around four key drivers of growth:
- Optimize capital structures and redesign asset liability strategies to remain profitable
- Enhance distribution and product development to change customer behavior
- Adapt internal processes to address tax and accounting changes
- Forthcoming regulations will establish further capital requirements
- Improved enterprise risk governance may lead to more effective risk management
- Regulators promoting fair outcomes for customers should help bolster confidence in the industry
- Demographic changes allow middle-class consumers to start thinking about insurance
- Insurers can serve more consumers with greater efficiency through advances in metrics and marketing channels
- Customers can be encouraged to buy insurance and appreciate its value through social media tools
- Agility hinges on the ability to adapt with speed to evolving market changes and consumer behavior
- By understanding its level of agility, a company is better situated to consider its degree of appetite for variability and risk
- As technology is integrated into core competencies, hiring and retaining specialized talent will be crucial
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|Download "Business Pulse: top 10 risks and opportunities for insurance in 2013 and beyond" to see the issues that are likely to emerge in the coming years.|