General Insurance Article - PwC's 20th annual CEO survey


PwC polled 95 insurance CEOs in their 20th annual PwC global CEO Survey and found that they are more concerned than leaders in any other industry about the combined threats to their growth prospects

 PwC polled 95 insurance CEOs from 39 countries, who anticipate being hugely impacted by disruptive change and feel more threatened than leaders of sectors including entertainment and media, banking and healthcare. Nevertheless, 80% of insurance leaders are confident they can grow revenues through embracing new technologies, adapting their workforce and pursuing M&A activity.

 Technological disruption
 Fears around the speed of technological change have increased since last year, with 83% of insurance CEOs citing it as a threat to growth (up from 69%) and over a quarter (28%) saying technology will completely reshape competition in the industry over the next five years.

 New entrants to the market continue to be perceived as a threat, with 65% of insurance leaders highlighting concerns about the competition they face.

 Economic, social, policy and environmental threats
 Over-regulation continues to be the number one concern for 95% of insurance leaders across the globe. Other threats identified are uncertain economic growth (84%), social instability (75%), geopolitical uncertainty (74%) and the future of the Eurozone (72%).

 Over half of insurance leaders globally (60%) believe it is becoming harder for them to compete in an open global marketplace amid moves toward more protectionist national policies.

 Industry leaders are also concerned about shifting customer behaviour, as 78% of CEOs say this threatens growth (up from 64% last year). In order to adapt, insurers need to ensure they have a diverse workforce representing their customer base but 83% of insurance CEOs see a lack of availability of key skills as a threat to business growth.

 Path to growth
 Despite soft premium rates, low interest rates and subdued economic growth contributing to ongoing cost pressures, insurance CEOs are generally optimistic about their companies’ growth prospects with 81% of those surveyed confident they can achieve revenue growth over the coming year.

 Insurance CEOs believe strengthening their digital and technological capabilities is the most important area to capitalise on new growth opportunities and 61% say they are exploring the benefits of humans and machines working together in order to ensure their workforce is fit for the future.

 Following a wave of industry megadeals in late 2015/ early 2016, over a third (35%) of insurance CEOs say they are planning new M&A activity in the next 12 months to drive growth and profitability.

 Commenting, Jim Bichard, UK insurance leader at PwC, said: “The optimism shown by insurance CEOs for continued growth shows how the speed of technological change can be turned into a great opportunity. As customers demand more interactive and transparent interactions with their insurers, partnering with startups to learn new ways of working enables the sector to tap into a wealth of different experiences.

 “By engaging with these new entrants to the market and simultaneously rethinking their in-house talent strategies, companies are waking up to the fact that a smart, diverse workforce will be their secret weapon. Insurers can reap the benefits of being proactive in disrupting themselves as a way of combating perceived external threats to growth such as regulation.”
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.