The insurance industry has gone through tough economic times ever since the global financial crisis. Regulators are under pressure to increase scrutiny over insurance companies to ensure their financial soundness whilst there is ongoing pressure on the insurance company to perpetually increase shareholders’ return. With that, there are very challenging yet exciting times that lie ahead for insurers, analysts at PwC have said.
PwC is seeing a continuing trend towards mergers and acquisitions especially in the developing and emerging markets. Insurers are looking beyond the traditional markets and distribution channels to be more focused on customers’ behaviour and needs.
The analysts who previewed the 2015 financial year, say insurance industry is facing once-in-a-generation disruption. Top Insurance Industry Issues in 2015 discusses the challenges and opportunities confronting insurers, and provides insight on how to adapt to change.
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This describes developments in the regulatory environment and property and casualty (P&C) core systems transformation, provides insight into what insurers can expect in these areas in the coming year, and makes recommendations on how they can adapt to related change.
The full edition of Top Insurance Industry Issues in 2015 according to PwC, financial and management experts, will be available in March and include focus sections on: insurance modernisation; taxation; financial reporting; the deals environment, the customer experience, and the potential impacts of autonomous vehicles on insurers.
Before now, the analysts have looked at key areas affecting insurance business and customer relationships including:
How insurers can win customers, one at a time
Over the last decade, insurance companies have struggled to meet customers’ rising expectations – influenced by their experiences with retail and other industries – for low prices, high quality service 24/7, and more. One promising strategy is to put customers at the centre of the business model.
To succeed today, insurance companies need to shift the focus of their business from product and agents and to put customers at the centre of their business models. By adopting a customer-centric approach, P&C and life insurance companies can win new business, increase sales to existing customers, and build brand loyalty.
Fast way to becoming a digital front-runner
This publication explores the megatrends that are reshaping the competitive environment for insurers and the markets in which they operate, looking at 3 areas:
i) How digital is reshaping the competitive landscape for life and pensions businesses
ii) Why keeping pace with accelerating change is proving so difficult and the risks this creates
iii) How to develop the adaptable mindset, and the faster decision-making and operational flexibility needed to move out in front of the market
The central message is that whatever organisations are doing in the short term – be this dealing with market instability or just going about day-to-day business – they need to be looking at how to keep pace with the sweeping Social, Technological, Economic, and Environmental and Political (STEEP) developments ahead.
