March 05, 2017
Insurance CEOs are more worried about a range of threats to their growth prospects from over-regulation, the speed of technological change, changing customer behaviour and competition from new entrants compared to other sectors according to PwC.
PwC did say however that while disruptive change has the biggest impact on insurers, many remain confident of growing revenue over the next year and are among the most keen to embrace disruption.
Even though the sector is experiencing soft premium rates, low interest rates and subdued economic growth in a number of developed markets, insurance CEOs are optimistic about their own companies’ growth prospects. 35% are very confident they will get high revenue growth over 2017 and over 80% said they were somewhat confident.
However, insurance CEOs are also aware of the disruption and change in the industry, the transformational impact which is now evident in areas ranging from robo-advice to pay-as-you-go and sensor-based coverage. Concerns over regulation, competition from new market entrants, the pace of technological change and especially shifting customer behaviour have risen again from their high levels in 2016.