The general outlook for the global insurance industry is mixed.
The repercussions of the global economic recession continue to reverberate across much of the world, creating significant impediments to the growth and prosperity of global life and non-life insurers.
The industry faces a number of challenges in 2012
The general outlook for the global insurance industry is mixed, a consequence of persistently challenging economic, market and regulatory circumstances. Other than Asia Pacific, where continued growth is expected in 2012, the rest of the world is mired in economic instability.
Europe, in particular, is saddled with ongoing political and macroeconomic uncertainty, affecting investors, consumers and insurer balance sheets.
The US and Canada are faced with low interest rates pressuring investment yields, listless economic conditions grinding down loss reserves and premium-rate adequacies, expanding (though still inexact) regulations governing insurer risk and capital management practices that are stymieing a quick strategic response to the malaise.
Nevertheless, in this climate of uncertainty, insurers can achieve meaningful results. The keys to success seem to be flexibility and innovation.
We believe those insurers that make greater use of predictive modeling and other advanced analytics, prepare and plan in advance of anticipated regulatory changes, and resolutely reshape their products, services and distribution channels to conform to evolving customer preferences and needs will emerge stronger and more profitable in 2012.
For a clear picture of where the industry is and, more importantly, where it is heading, see our individual sections on:
Specifically, we offer insight into techniques that may create opportunities for increased sales and improved efficiencies.
|Read on to learn how to:|
|1||Respond to the changing accounting and regulatory convergence|
|2||Establish capital and risk management solutions for the low interest rate environment|
|3||Increase investments in customer analytic tools to drive efficiency|
|4||Monitor developments and reinvent products to bolster growth|
|5||Embrace the internet and act upon changing consumer behaviors|