Technology innovation is top growth opportunity for re/insurers in 2017
Technology innovation will provide the biggest growth opportunity for re/insurers in 2017, according to a survey by Guy Carpenter, a global risk and reinsurance specialist.
The annual survey titled “Guy Carpenter Annual Pulse Survey,” polled executives from re/insurers. The goal was to identify the top opportunities and threats to profitable growth in the year ahead, as well as examine the most significant disruptive forces impacting the industry.
Of those surveyed, 42 percent believe technology innovation represents the greatest opportunity to grow their business in 2017, followed by new products (25 percent), new geographic markets (13 percent), talent acquisition (12 percent) and M&A (8 percent).
“One of the most important findings we can take away from this year’s survey is the significant growth opportunity that technology innovation continues to bring to the re/insurance industry,” said Tim Gardner, CEO of US operations at Guy Carpenter.
“The industry must be prepared to not only understand and manage the risks associated with these rapid advancements, but to also utilise these innovations to create actionable business intelligence and realise profitable growth opportunities.”
The potential for a financial recession is cited as the biggest threat to profitable growth in the year ahead by 36 percent of respondents.
One-in-three professionals ranked cyber as the most threatening emerging risk, followed by technology risks (11 percent), climate change (11 percent) and terrorism (9 percent).
The continued rise of big data will cause the most disruption in the re/insurance industry over the next five years, according to 38 percent of those surveyed.
Other significant market-changing forces include the speed of technological innovation (29 percent), the aging population (15 percent), millennials or Generation Y (13 percent) and expanding urbanisation (5 percent).
Looking ahead to 2017, 21 percent of professionals see regulatory and rating agency changes as the biggest threat to plans for profitable growth, followed by global economic and political uncertainty as cited by 17 percent of respondents.
