Deloitte's recently published outlooks for the Life and Annuity and Property and Casualty (P&C) industries have valuable insights for executives thinking ahead. They explain how the industry globally is responding to the same challenges that haunt the UK market, covering six key topics:

Competition and markets

Insurers are preparing for more M&A. Finance is cheap, encouraging buyers. Valuations are up, encouraging sellers. P&C carriers are specifically examining M&A as a way to outstrip sluggish organic growth, held down by overcapacity.

Clients and products

Life and annuity writers are exploring new approaches to customers and products. Major customer segments are sceptical of the industry's traditional sales pitch. Simpler products could be the key to reaching them.

Governance, risk, and compliance

The industry continues to face a wave of major new regulations, leaving it uncertain how best to respond.

Financial management

US players are considering how to derive greater value from their finance functions, which could do more to support strategy and decision making.

Organisational effectiveness

Insurance companies continue to cut unnecessary costs. But they are also becoming nimbler, more responsive businesses. This requires creative thinking and a measure of risk taking. They are updating talent recruitment and career development to hire and retain staff with the right skills for the future – think data and analytics.  

Technology dynamics

Life insurers are carefully planning large yet unavoidable technology investments, such as implementing mobile technology to meet changing agent and customer distribution demands. P&C carriers are developing digital strategies to improve customer experience.

The outlooks begin with a quote from Charles Dickens' classic, A Tale of Two Cities: "It was the best of times, it was the worst of times". The quote alludes to the current operating environment – an improving economy, but an insurance market beset by fierce competition, low growth and increasing regulation. Let's hope the parallels with revolutionary France end there.

Access the outlooks online:

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