2015 Global Insurance Outlook

2015 Global insurance outlook

"If one word could sum up the focus of insurers in 2015, it is ‘technology.’ With the return of stable economic conditions, it makes sense for insurance companies to invest in digital solutions that widen margins and provide competitive differentiation."

http://insurancethoughtleadership.com/author/shauncrawford/#sthash.3zcfsDVL.dpbs

Shaun Crawford, Global Insurance Leader

Improving macroeconomic conditions across much of the world bode well for international property-casualty and life-annuity insurance companies.

There are clear opportunities to connect to underserved consumer markets, the expanding middle class and high-net-worth clients with new and better products. Forward-looking insurers are targeting their growth strategies in those high-potential areas.

Of course, significant challenges remain:

Intensifying competition

Generally soft pricing conditions

Tight profit margins

Increasing threats to cybersecurity

Investing in technology and digital platforms will strengthen their relationships with customers across all product classifications and geographies, as well as:

Improve front-end sales, distribution and customer service

Enhance the shopping experience for businesses and consumers with products that are easier to understand and compare

Improve back-end operational efficiency and expense management

Shifting customer preferences and new competitive pressures require that insurers respond with speed and agility. As a result, they are looking to simplify systems, processes and structures and achieve enterprise data excellence.

The rising demands of regulation and compliance also pose a challenge, most notably in global enterprise risk management and risk analytics.

 

Property-casualty insurance Outlook

• Profit margins are challenged by continuing low interest rates, tepid growth, a volatile investment climate and increased infrastructure expenses.
• Greater transparency could help improve the industry’s low level of consumer trust.
• Robust data analytics and predictive modeling will help insurers pinpoint new opportunities, optimize claims outcomes, and reduce claims fraud.
• Insurers can improve customer connectivity by expanding distribution and customer service, transforming operations and investing in cloud computing, mobile solutions and business collaboration software.
• Regulatory pressures are forcing insurers to be more disciplined in their risk management, capital planning and operational oversight.

2015 Canada property-casualty insurance outlook

To read the Original article, click here http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/ey-2015-global-insurance-outlook?gclid=Cj0KEQjw3auuBRDj1LnQyLjy-4sBEiQAKPU_vVOCiSLsXEsx_m-FGhTxfU-yZvsWPWg10MZcpiRVjBwaAlJ18P8HAQ