Insurance CEOs are worried about the future of their companies, the possibilities of growth and the relevance of their products.
According to a survey made by the advisory services company KPGM to 100 insurance executives at the start of 2016, most of them recognize that the low-rate environment could affect the growth of the entire insurance market.
“What we found was a significant lack of confidence amongst insurance CEOs, not just in their growth expectations over the next year (just 33 percent say they are very confident in their company’s growth prospects) but also in their ability to transform (71 percent worry that their organization will still largely be the same in 3 years’ time)”.
This lack of confidence also includes the development of new products and keep up to date with technology. The survey reveals that almost 80% of insurance executives were concerned about the relevance of their companies’ products and services three years from now.
For KPGM, create innovative products and services comes with a better understanding of the current and target customers. Analytics and data management can help insurance companies to discover the needs and preferences of the customer.
Attracting Millennials is a key interest of insurance companies and the survey says that 65% of them are using disruptive technology to engage and improve interaction with customers.
Inorganic growth through mergers and acquisitions and partnerships between traditional and non- traditional players will create new opportunities to meet the customers’ expectations: “Insurers will also need to explore new opportunities to achieve scale and improve efficiency. Some will look for potential mergers and acquisitions that unlock new market segments, capabilities, and geographies. Others will find opportunities in new technologies – automation, digital labor and cognitive computing solutions – that improve both business flexibility and profit margins”.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services