2017 US P&C Insurance Outlook – EY Report
Article Synopsis :
The US P&C industry is at an inflection point. A dynamic technology landscape and policy changes proposed by the new Trump administration require P&C insurers to re-evaluate their strategies.
To help, EY’s “2017 P&C Insurance Outlook” discusses policy-level changes, shrinking investment incomes, escalating claims costs, rising regulations, advances in technology and the growth of InsurTech in the context of the desire for profitable growth.
Per the report, the key questions CxOs should be asking themselves include:
- What will changes in political direction mean for P&C?
- What markets and business segments should we focus on?
- How can we use new age technologies to streamline costs and attract new business?
- How can we build an innovative customer driven business?
- How can we acquire the right talent?
Market share, suggests this report, will be increasingly dependent on technology, data and analytics. Strategic priorities for 2017 should include:
- Focus on customer-driven innovation: Accelerate product and service innovation, building millennial-minded strategies and collaborative business models with inputs from InsurTechs and business leaders.
- Use technology to drive top- and bottom-line performance: Deploy robotics to automate routine tasks, applying advanced analytics across the value chain, and building core digital technologies such as cloud, mobility and social media into business processes. Target technology deployments reducing costs and increasing productivity, transparency, and security.
- Put cyber risk on the corporate agenda: 2017 will see new forms of cyber attacks, perhaps moving from digital to the physical world owing to the growing use of interconnected devices and machines. P&C carriers and regulators together need to build a full-proof risk management strategy to defend against such attacks. Cyber security can also be seen as a new business opportunity, with insurer’s developing products and solutions around same.
- Rethink strategies to attract, develop and retain talent: Insurers must prepare well ahead to secure the right talent. They must analyse current skills gaps and invest in talent programs to attract, develop and retain the right people, especially Millennials.
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Digital Insurer's Comments
Focus on the customer, embrace technology, make security a priority, and, above all, hire and retain the right people. We cannot emphasis this last point enough. High quality people, with the right skill sets and can-do spirit (stoked by the right incentive structures), are your most valuable assets in turbulent times. /message_box]
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