Turning disruption to your advantage – PWC
Article Synopsis :
PwC’s 18th Annual Global CEO Survey takes a look at how business leaders are finding new ways to compete in an era of unprecedented technological change. The report “Turning disruption to your advantage” is a summary of key findings in the insurance industry, based on interviews with 80 insurance CEOs in 37 countries.
Insurance CEOs – more than CEOs in almost any other industry – believe new regulation, increasing competition, technological developments around service provision, and changes in distribution will have more of a disruptive impact over the next five years. Four key opportunities emerge from the data:
- Opportunity 1: Realising the digital potential
- Opportunity 2: Seeking out complementary capabilities
- Opportunity 3: Pushing into new sectors
- Opportunity 4: Re-imagining your workforce
CEOs view technology as a means to an end – the end being to grow the business. The report explores ways insurance leaders can overcome short-term hurdles while creating new platforms for the future growth in four crucial areas:
- Developing truly customer-centric business models
- Simplifying operating models
- Looking at regulation in the round
- Proactively managing risk
The transformation of the insurance marketplace is accelerating, creating opportunities for some and threats for others. 59% of surveyed CEOs believe there are more growth opportunities than three years ago, while 61% see more threats than they did in 2012.
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Digital Insurer's CommentsThe good news is people are living longer and have more wealth to protect. But this survey raises questions about whether established insurers have the technology, customer insight and trust to capitalize on these favourable trends.
Intensifying price competition and difficulties conveying the true value of coverages sold beget a vicious cycle of commoditization, lower rates and margins, and higher rates of self insurance. Insurers investing aggressively to challenge and change business models, and develop and deploy digital capabilities at a faster rate, will enjoy the fruits of differentiation, outperforming peers and exceeding market expectations.
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