It is an exciting time in the insurance industry globally, as insurers are investing more than ever to transform their business models and seize subtly different growth opportunities around the world. Of course, macroeconomic challenges, demographic shifts and new competitive threats are big challenges – and part of what energizes industry leaders.
That's why it’s an opportune time for insurance industry stakeholders to take stock, as the EY insurance team has done with our latest editions of our annual industry outlooks. The regional reports covering the Americas (pdf), Asia-Pacific (pdf) and Europe (pdf) are the result of several think tank sessions conducted with industry and functional professionals, as well as strategists and technologists. They cover the major trends, disruptions and innovations that are impacting the global insurance industry, and offer recommendations for how all types of insurers can navigate the challenges and seize the opportunity.
Overall, the team found that global insurance sector growth is expected to remain weak, though there are many reasons for optimism. There is much more detail in the reports, but three “big ideas” point the way forward for insurers:
- Digital transformation is critical to optimize costs, boost innovation and drive agility.
- Both digital and direct distribution channels are imperative for growth, though traditional human channels are not going anywhere soon.
- Life insurers must expand their value propositions and product sets to address all aspects of financial wellness.
The entire EY insurance team is energized by the possibilities that exist for insurance – better ways of working, a clearer sense of purpose, more effective use of emerging technologies and ecosystems as well as our industry’s unique ability to promote financial wellness, provide protection and enable insurance customers to better manage risks.
The following are among the highlights of the report.