1、Global Insurance Market Pulse 2023/2024Trends,Insights,and Strategic Imperatives for the Insurance Industry.2Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingIntroduction033.Structural Iss

2、ues within the Industry081.Executive Summary044.Strategic Inperatives162.Insurance Market055.Concluding Remarks21ContentGlobal Insurance Market Pulse3C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingIntroductionWith o

3、ur commitment to advancing the insurance in-dustry evolution,we are introducing the bi-annual publication of the Global Insurance Market Pulse.This publication aims to provide crucial insights and detailed market trends that are essential for developing the Insurer of the Future.It is designed to as

4、sist for-ward-thinking insurers in addressing current challeng-es,strengthening their market position,and identifying new opportunities.Essentially,this report is more than just a source of in-formation it acts as a catalyst for change and a guide for insurers ready to leverage innovation.It lays th

5、e foundation for the development of the Insurer of the Future,focusing on resilience,relevance,and sustain-able growth,providing a strategic roadmap for those looking to innovate and grow within the evolving insur-ance landscape.Innovation Meets New Insurance Risk Concepts:Navigating Inflation,Digit

6、alization,and Climate Risks.4Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingCore inflation is expected to cool down due to several factors such as global activity reduction,hous-ing mark

7、et adjustments,eased supply chain strains,and tightened monetary policies.The anticipated cost-of-living crisis calls for fiscal support to cushion the populace,necessitating fiscal position revi-sions.The insurance industry is gearing up to adapt to a slowing econom-ic backdrop,heralding a period o

8、f transformative shifts.The focal point of this transformation re-volves around narrowing the pro-tection gap,a strategy that is dual-faceted and embraces the advancements such as paramet-ric insurance.Moreover,the indus-try needs to continue to prioritize Environmental,Social,and Gover-nance(ESG)fa

9、ctors,with impact investing holding a significant po-sition in portfolio deliberations.To navigate this changing land-scape successfully,existing players in the industry need to foster inno-vation and adaptability.This en-tails a profound exploration of customer-centric approaches,aiming to resonate

10、 deeply with customer needs and preferences.The role of technology and digita-lization is central in this narrative,offering avenues to refine opera-tions and enhance efficiency sub-stantially.In addition,fostering a culture that is collaborative and encourages a continuous learning ethos stands as

11、a vital strategy.A resolute commitment to sustain-ability and corporate social re-sponsibility is anticipated to serve a dual purpose:it will both nurture a positive footprint in society and drive business growth,setting the stage for a future that is responsi-ble and purposeful.1.The global economi

12、c landscape is experiencing a slowdown,notably in developing economies characterized by restricted access to credit and a neutral fiscal stance.ExecutiveSummaryGlobal Insurance Market Pulse5C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vect

13、orFabrication:printingAs we continue to move through 2024,the insurance industry is grappling with a range of challenges that are reshaping the sector.From the rising costs associ-ated with inflation to the need for digital transformation,insurers are navigating a complex landscape.The in-creasing f

14、requency and severity of natural disasters due to climate change are additionally putting pres-sure on the higher claims costs as well as widening already existing coverage gap.Insurers are also under pressure to incorporate ESG factors into their business models and investment strategies.The digita

15、l realm introduces increased cyber risks,challenging insurers to provide effective coverage and manage their own cyber security.The insurance industry is grappling with a range of challenges that are reshaping the sector.2.Insurance companies are likely to face significant challenges during periods

16、of high inflation due to increased claims costs and reduced demand for their products.However,higher interest rates may provide an earnings tailwind through improved investment returns.InsuranceMarketKEY TAKEAWAYS Insurers maintain a steadfast commitment to pursuing profitable growth while retaining

17、 well-performing risks.Market participants view inflation as structurally embedded in the investment landscape and consider it as the top threat to their bottom line and investment portfolios.In the long term,relentless technology advancement,ever-rising consumer expectations and competitive chaos(r

18、esulting from the dissolution of industry boundaries)are reshaping the very definition of insurance.Environmental,Social,and Governance(ESG)factors and impact investing continue to be at the forefront of portfolio considerations.6Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymb

19、olJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingWe are highlighting several factors presently influencing critical business outcomes from the insurers perspective,as well as how these elements are sculpting the financial trajectory of insurance entities.INF

20、LATIONThe rising costs of goods and services continue to be of a significant concern for the insurance industry.The fact remains that irrelevant from the reasons of source of the inflation bubbling,the persistently high in-flation is eroding the purchasing power of customers.Furthermore,infla-tion i

21、s increasing the cost of claims,particularly in sectors like health and property insurance.It can also impact investment returns.Monetary policy actions to combat inflation are in position to trigger recession if it has not already begun in several regions.DIGITAL TRANSFORMATIONThe insurance industr

22、y is continuing its significant digital transformation.Adapting to new technologies and digital platforms is a challenge both in terms of successfulness of such transitions as well as their financial impact on the insurers,as evidenced by numerous reports published on this topic.This is particularly

23、 true for established insurers still reliant on a large number of legacy systems.CLIMATE CHANGEClimate change is expected to significantly influence,if not undermine,the trajectory of the insurance market.It is facilitating a surge in the oc-currence and intensity of natural catastrophes.This escala

24、tion is conse-quently driving up claim expenditures for insurers,notably within the property and casualty domain.Global Insurance Market Pulse7C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingESG RESPONSIBILITYThe ins

25、urance sector is under escalating pressure to embed Environmen-tal,Social,and Governance(ESG)principles into their business paradigms and investment philosophies.As underscored previously,climate change is poised to have a deep-seated impact on the operational dynamics of insurers.Hence,it becomes i

26、ncumbent upon insurance entities to prior-itize the integration of ESG factors.Thereby not only safeguarding their business viability but also exerting a positive,downward pressure on their customer base,steering them towards sustainability.CYBER RISKAs we move deeper into the digitalization of pers

27、onal and business realms,the epicenter of economic value has unequivocally shifted to digital mediums,predominantly safeguarded in cloud environments.This trans-formation brings to the fore an urgent and critical need for insurance against a backdrop of escalating cyber threats,a situation further i

28、nten-sified by geopolitical fluctuations.The 21st-century society demands a heightened focus on cybersecurity,rendering it a fundamental prereq-uisite for seamless operation in this digital epoch.Insurers stand before a formidable task:to devise potent coverage strategies for cyber risks while simul

29、taneously bolstering their own cybersecurity defenses.It is pivotal that insurers elevate the role of sophisticated tools in mitigating cyber risks,steering them to the forefront of their service portfolios.8Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:

30、5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingINDUSTRY LIKE ANY OTHERThe forthcoming sections of this report will delineate the strategic responses in detail.Presently,we concentrate on examining the en-trenched structural issues per-vading the industry,which funda-mentally un

31、derpin the anticipated strategic approaches.The prevailing circumstances in the industry are characterized by a sustained impediment to reve-nue augmentation,a deficiency in adopting a customer-centric ap-proach,and an inadequate re-sponse to emergent risks,thereby exacerbating the protection gap.Fu

32、rthermore,the burgeoning role PROFITABILITY THROUGH REVENUE GROWTHRevenue augmentation in mature markets is currently facing head-winds due to pricing pressures and a sluggish pace in the growth of organic demand.A closer scru-tiny of the dynamics in developed economies unveils a reliance on price a

33、ugmentations to drive growth,a strategy that eclipses efforts to broaden the customer base through increased policy volumes or the introduction of in-novative products to cover emerging risks.This trend poten-tially signals a diminishing rele-vance in the contemporary mar-ket landscape,necessitating

34、 strategic re-evaluations to foster sustainable growth.In light of the unprecedented challenges brought forth by the COVID-19 pandemic,as has already been highlighted,the insurance industry is navigating through a complex environment and transformative phyase in the industry lifecycle.We are in an e

35、ra characterized by the emergence of new complexities,such as AI and the acceleration of pre-existing dynamics,in particular climate change and cyber risks impacts.It is incumbent upon established firms in the sector to respond swiftly and strategically to these substantial structural shifts,provide

36、d they have not already initiated measures to adapt to this evolving landscape.of intermediaries in reaching the end consumers and the relentless challenges posed by insurtech enterprises amplify the need to in-novate.Despite the advent of technological advancements,the industry finds itself ensnare

37、d in a cycle of elevated expense ratios,unable to fully harness the poten-tial benefits.3.Structural Issues within the IndustryGlobal Insurance Market Pulse9C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingNOMINAL P&C

38、 MARKET(PRIVATE CUSTOMER BUSINESS)GROWTH VS.INSURANCE INFLATION,2002 2021 IN%:MORE THAN HALF OF(NOMINAL)GROWTH IN EUROZONE OVER THE PAST 20 YEARS WAS DRIVEN BY INSURANCE INFLATION ALONE.SOURCE:EUROSTAT1009080706050403020100France Germany Italy Spain Euro area97405117193986586234Nominal increase in G

39、DPInsurance inflation(ex.Health insurance),summed up10Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingCUSTOMER IN THE CENTER OF MARKET EFFORTDespite concerted efforts to pivot towards a m

40、ore customer-centric approach,the insurance industry finds itself grappling with a series of entrenched challenges that hinder this transition.A critical ex-amination of the sector reveals a pronounced inability to fully align the development and delivery of products and services with the evolving n

41、eeds and preferences of the modern consumer.To illus-trate the point further,despite a surge in marketing expenditures aimed at enhancing custom-er-centricity,the impact on indus-try premiums has been negligible,indicating a disconnect between marketing strategies and actual customer needs and prefe

42、rences.This is partly attributed to a histor-ical reliance on traditional busi-ness models such as agent-based sales,which are often rigid and not designed to foster a dy-namic,customer-focused ap-proach.The overall result is a widening of the protection gap.PROTECTION GAPThe protection gap refers t

43、o the uninsured or unprotected portion of the resources needed to fully mitigate risk.The value of this un-protected risk exposure has been steadily rising over the past five years.Swiss Re Institute estimates the global protection gap at USD 1.8 trillion in premium equivalent terms for 2022,up by a

44、 cumulative 20%from a comparable USD 1.5 trillion in 2018.About 43%of risk globally was unprotected by in-surance and other assets in 2022,improved from 46%a decade ago.The global protection gap of USD 1.8 trillion in premium equivalent in 2022,4.0%higher in nominal terms than in 2021,similar to glo

45、bal nominal GDP growth.The global protection gap growths at roughly the rate of global GDP,at 3%to 5%annually on average,in nominal terms over 1,5 and 10 years.The value of unprotected risk exposure has been steadily rising over the past five years.Global Insurance Market Pulse11C0 M0 Y0 K100Pantone

46、 black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingSTRATEGY APPROACH FOR CLOSING PROTECTION GAP:In closing the protection gap the insurance industry will need to implement a dual-strategy approach.Loss-prevention strategies focus on reduci

47、ng risks and potential damages through safety education,adherence to codes,and use of technology.Mean-while,risk-transfer strategies aim to spread financial risk across a wider group using innovative insurance products,increasing insurance penetration,and fos-tering public-private partnerships.Both

48、approaches play a pivotal role in closing the in-surance protection gap,with loss prevention aiming to lower the occurrence of insurable events and risk transfer seeking to ensure adequate financial cover-age when such events occur.3.2%5432103.0%4.1%4.4%4.0%3.9%10yr(2012-2022)5yr(2017-2022)1yr(2021-

49、2022)Protection gap growthGDP growth12Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingThe Insurance Industry needs to close the Protection Gap through Risk Loss Prevention and Risk Transf

50、er.LOSS PREVENTION:Implement safety education programs to increase public awareness of potential risks.Enforce stricter building codes in high-risk areas to reduce potential damages from natural disasters.Promote healthy lifestyles and preventive care to decrease the incidence of chronic diseases.Ut

51、ilize technology and data analytics to identify risk patterns and inform preventative measures.Prioritize preventative measures over other immediate needs.RISK TRANSFER:Innovate insurance products with features like parametric triggers for swift disaster recovery.Boost insurance coverage in developi

52、ng economies.Diversify and enhance accessibility of insurance markets,particularly for at-risk groups.Strengthen collaborative relationships between public sector entities and insurance firms.Leverage public-private partnerships to circumvent political and financial barriers.Amplify understanding an

53、d acceptance of risk transfer solutions as resilience builders.Global Insurance Market Pulse13C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingINSURETECHS AND INTERMEDIARIESIn the dynamic landscape of the insurance se

54、ctor,in-surtech trends are spearheading at least some ad-vancements,chiefly within the marketing and distri-bution dimensions of the insurance value chain.Despite this,the sector faces a substantial barrier to reaching its full potential,primarily due to the limited scalability of insurtech initiati

55、ves and,even more im-portantly their inability to truly innovate the underly-ing products.Established entities within the industry find themselves grappling with the integration of these avant-garde,technology-driven innovations into their existing value chains.This scenario delin-eates a pressing n

56、eed for a harmonious amalgama-tion of the new-age solutions with the existing frame-works to foster a culture of continuous innovation and to maintain a competitive edge in the market.How-ever,this is difficult to achieve when the industry re-mains highly concentrated and the incentive to truly inno

57、vate is low.CONSOLIDATION OF INSURANCE INDUSTRY,MARKET SHARE OF TOP 5 LEADING COMPANIES IN THE RESPECTIVE MARKETS AND LINES OF BUSINESS IN GWP,2021.SOURCE:WAVESTONE60%50%40%30%20%10%0%50,29%40,61%31,22%31,34%Northwestern 7,49%Northwestern;7,49%State Farm;8,78%AXA;11,05%Allianz SE;12,92%New York Life

58、;6,96%Berkshire Hathaway;6,44%Generali;10,65%AXA S.A.;11,37%Metropolitan:6,02%Progressive;6,96%Allianz;7,76%Lloyds;10,02%Prudential of America;5,59%Allstate Insurance;5,17%CNP Insurance;5,85%Chubb Ltd;8,39%Liberty Mutual;4,87%Crdit Agricole Assurances;5,31%Zurich InsuranceGroup Ltd;7,60%Mass Mutual

59、Life;5,28%Non-Life EuropeTop 5Top 4Top 3Top 2Top 1Life EuropeNon-Life USLife US14Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingThe role of intermediaries in the insurance industry has b

60、een significantly amplified in recent decades.These intermediaries,including agents and brokers,have been instrumental in helping customers find the best insurance policies tailored to their needs.Insurers find themselves in a precarious position where they are gradually losing touch with the end It

61、 is imperative for insurance companies to find innovative avenues to connect directly with customers.customers,a scenario that could potentially dilute the brand value and customer loyalty that they have built over the years.The intermediaries,leveraging digital platforms,have managed to offer a mor

62、e per-sonalized and streamlined service,overshadowing the traditional approaches employed by insurers.This shift has brought to light a pressing concern for insurers;the urgent need to reinvent their customer engagement strategies to foster a direct and more profound connection with the end-users.In

63、 this evolving landscape,it is imperative for insur-ance companies to not only collaborate efficiently with intermediaries but also to find innovative ave-nues to connect directly with customers,understand-ing their preferences and needs from a first-hand perspective.THE SLOW PACE OF PRODUCTIVITY AU

64、GMENTATION Despite concerted efforts to enhance efficiency,the insurance industry has witnessed only marginal gains in productivity over recent years.Between 2014 and 2019,a mere 45 percent of global Property and Casu-alty(P&C)carriers managed to reduce their expense ratios,a statistic that paints a

65、 rather stagnant picture of the industrys progress in this realm.Even in the face of rapid technological advancements,the in-dustry seems to be caught in a relentless cycle of high expense ratios,unable to fully leverage the po-tential benefits that these advancements can offer.The situation calls f

66、or a deeper introspection and a radical overhaul of existing operational strategies.In other words,the industry players should foster a cul-ture of continuous improvement.Innovative solutions are not just accepted as there is an expectation from the market but are actively sought.By incorporating mo

67、dern technologies and streamlining existing pro-cesses,there is a substantial scope to enhance la-bour productivity across all facets of the value chain,a move that can potentially redefine the productivity landscape in the insurance sector.The goal should be to transition towards less labour-intens

68、ive operat-ing models by 2030.Such a shift would not only en-hance efficiency but also open up avenues for per-sonal connections with customers,adding a much-needed personal touch to the services offered.Global Insurance Market Pulse15C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:50

69、34_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingEXPENSE RATIO ACROSS P&C AND LIFE SECTORS SINCE 2017 IN US(%).SOURCE:WAVESTONEEXPENSE RATIO ACROSS P&C AND LIFE SECTORS SINCE 2017 IN EUROPEAN ECONOMIC AREA(%).SOURCE:WAVESTONE302520151005027,4311,032017US P&CPoly.(US P&C)US LifePoly

70、.(US Life)201820192020202110,929,9810,7110,8627,2827,227,4726,533530252015105028,3010,502017EEA P&CPoly.(EEA P&C)EEA LifePoly.(EEA Life)201820192020202110,6810,7011,5810,5829,2628,9628,8828,8416Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Dat

71、e:12/03/2024Scale:vectorSize:vectorFabrication:printingAs we navigate through this intricate web of information,chief executives will find themselves prompted to engage with a series of strategic inquiries,a necessary endeavor to foster resilience and steer their organizations towards a future groun

72、ded in innovation,adaptability,and sustained growth.This discourse aims to shed light on the critical pathways that leaders must traverse,leveraging previously discussed market sentiment as a beacon to illuminate the road ahead,and to carve out strategies that are both responsive and forward-thinkin

73、g,ensuring a competitive edge in a market that is as volatile as it is unpredictable.4.Strategic Imperatives for the Insurance IndustrySTRATEGIC QUESTIONS THAT THE INSURANCE CEOS NEED TO ADDRESS:How can organizations foster innovation and adaptability to stay ahead of the competition in todays dynam

74、ic market landscape?What customer-centric approaches can be implemented to gain a deeper understanding of customer needs and preferences?How can organizations leverage technology and digitalization to streamline operations and improve efficiency?What strategies can be employed to enhance collaborati

75、on and foster a culture of continuous learning within the organization?In what ways can organizations embrace sustainability and corporate social responsibility to create a positive impact on society while driving business growth?The path to future relevance and success lies in strategic adapta-tion

76、 and innovation.We take a look now at the pivotal strategies that insurers need to implement,from integrating ESG consider-ations to leveraging AI and data analytics,to remain competitive and relevant in the evolving land-scape.Global Insurance Market Pulse17C0 M0 Y0 K100Pantone black CWAVESTONEsymb

77、olJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingSTEP FORWARD AND INNOVATE THE PRODUCT LINEThe world is changing rapidly,and with it,the types of risks that people and businesses face.Insurance companies need to stay ahead of these changes by innovating thei

78、r product offerings.This could involve offering coverage for new types of risks.Additionally,there are many underin-sured risks and substantial risks that have been left uninsured.To ad-dress this,insurers need to make their products modular,reallocating capital between personal and commercial lines

79、,and moving quickly to establish a strong market position.One such product that should be highlighted is microinsurance.This product has the potential to provide cost-effective and efficient cover-age options to households.The uptake of microinsurance has seen a significant rise in recent years,espe

80、cially in the areas of life,property,and agricultural coverage.According to the Microinsurance Network,as many as 223 million individuals across 34 countries were reported to have microinsurance coverage in 2022.Life microinsurance emerged as the most prevalent product,providing coverage to the larg

81、est population in both Asia and Latin America.With the emerging middle class facing increased financial vulnerability due to inflation,affordable life and health insurance covers have become even more crucial to prevent households from slipping back into poverty in the event of a death or illness.EL

82、EVATE CUSTOMER INTERACTIONS AND THEIR EXPERIENCES THROUGH DEEPER PERSONALIZATION:Todays customers expect a seamless,personalized experience,wheth-er theyre interacting with a tech company or an insurance provider.To meet these expectations,insurers need to leverage available technolo-gy and data ana

83、lytics to understand their customers deeply and provide them with personalized products and services.This includes creating a seamless,consistent“multi-access”experience in every channel.Activating alternative channels and utilizing new technologies to distrib-ute insurance the insurance companies c

84、an reach currently un-der-served consumer groups.These alternative distribution channels,that no longer rely on agent networks can be for instance utility and remittance companies,mobile network providers,cooperatives,financial institutions,and insurance aggregators.Following these,insurance com-pan

85、ies will be able to reach wider audience that also include customers who have not previously purchased insurance.This strategy of enhanced and personalized customer engagement is crucial for the future success of insurance companies.18Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTON

86、EsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingSTART LEVERAGING ADVANCED MODELLING AND ANALYTICSInsurers can leverage advanced modelling techniques to dissect and comprehend the primary elements driving risk.To broaden the reach of insurance and tap i

87、nto new and under-served risk segments,there is a need for product innovation and development,with a strong focus on data and analytics.Parametric solutions,which rely on indices rather than actual losses,are particularly effective in areas like crop and catastrophe property insur-ance.The roles of

88、predictive modelling,underwriting automation or streamlining,AI-enabled virtual assistants,electronic health records,lifestyle data,and wearable devices cannot be overstated in making life and health insurance products more efficient and accessible to new customer groups.REVAMP YOUR TECHNOLOGY FOUND

89、ATIONSPer market projections that insurers are poised to allocate a substantial budget towards Information Technology(IT)in the forthcoming year,with a notable emphasis on modernizing their core technology infra-structures.This financial commitment underscores the industrys rec-ognition of technolog

90、ical advancement as a cornerstone for operational efficiency and competitive differentiation.Nonetheless,the dispersion of this investment across the sector exhibits a degree of variance.In fact,several studies have pinpointed the fact that a moderate percentage of insurers have successfully transit

91、ioned to contemporary policy administration systems.This disparity highlights a pivotal area of focus,urging insurers to accelerate their digital trans-formation endeavors to stay abreast of industry standards and consum-er expectations.Such observations call the attention the imperative for insurer

92、s to me-ticulously strategize their IT investments.By doing so,they can signifi-cantly enhance their technological capabilities,streamline operations,and foster a culture of innovation,thereby propelling the industry towards a future-ready state.ELEVATE WITH PRODUCTIVITYThe insurance sector,much lik

93、e its counterparts in other industries,is consistently faced with the need to boost productivity and minimize operational costs.There exists a potential for insurers to augment pro-ductivity and cut down operational expenses by a substantial 40 percent in the coming decade.However,despite numerous c

94、ost-saving initiatives,the overall results have been underwhelming.Productivity gains have been limited on an industry-wide scale.In the period between 2014 and 2019,expense ratios saw a decline for merely 45 percent of global P&C carriers,with notable regional discrepancies.For a significant portio

95、n of insurers,these ratios Global Insurance Market Pulse19C0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingeither remained unchanged or saw an increase.This paints a bleak picture for an industry that has been vocal a

96、bout the importance of productivity improvements.To tackle this,a comprehen-sive,structural approach is needed,which includes the adoption of ad-vanced technologies,automation of routine tasks,and enhancement of customer experience.INCORPORATE ENVIRONMENTAL,SOCIAL,AND GOVERNANCE(ESG)FACTORS INTO THE

97、 BUSINESS COREAs society becomes more conscious of environmental and social issues,insurance companies can differentiate themselves by integrating ESG considerations into their core business models.This could involve offer-ing insurance products that incentivize sustainable behaviours or in-vesting

98、in sustainable businesses.It is not just about compliance,but about aligning the companys values with those of its customers and society at large.EMBRACE ECOSYSTEMS THROUGH INSURTECHThe insurance industry is on the verge of a paradigm shift.Traditional industry borders are falling away,and ecosystem

99、s are becoming in-creasingly important.Insurers need to engage with these ecosystems and with insurtechs to stay relevant.This could involve either partnering with insurtechs to leverage their technology and innovation or creating their own ecosystems.TRANSFORMING BUSINESS CULTURE AND PRACTICESThe a

100、ftermath of the COVID-19 pandemic has brought about a significant workforce transformation within the insurance industry.The shift towards hybrid work models and the need for more dynamic,agile work practic-es have become more apparent.As a result,insurers need to reimagine their work culture,divers

101、ity,and work methods to align with these changes.This involves identifying essential skills and talent and devising the best strategies for engagement and retention.The industry is also transition-ing towards a global talent marketplace,enabling recruitment from anywhere in the world.This presents b

102、oth opportunities and challenges for insurers.To remain competitive,insurers are focusing on increasing their talent liquidity,enabling more effective workforce utilization in line with busi-ness needs.This involves exploring new talent pools,allocating and deploying resources where they are most ne

103、eded,and building a value proposition for their employees based on the companys values and work methods.20Global Insurance Market PulseC0 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingGlobal Insurance Market Pulse21C0

104、 M0 Y0 K100Pantone black CWAVESTONEsymbolJOB:SGK24marENUMBER:5034_003484Date:12/03/2024Scale:vectorSize:vectorFabrication:printingIn wrapping up this report,our aspiration is that youve gathered deeper understandings of the evolving in-surance sphere,with its imminent challenges and promising prospe

105、cts.The unmistakable rapid pace of change,propelled by elements such as cutting-edge technology,macroeconomic shifts like inflation,envi-ronmental hazards,and emerging protection gap,necessitates that insurers remain alert and for-ward-thinking.Central to this transformative phase remains unwav-erin

106、g commitment to customer-centricity,operation-al resilience,and sustainable strategies.Insurers are urged to prioritize their clientele,harnessing techno-logical advancements and insights to craft tailored,fluid experiences and innovate their product offerings.Moreover,reinforcing their operational

107、structures to withstand potential threats,especially in the context of climate change repercussions,is crucial.Adopting sustainable practices and upholding societal values is no longer optional;its integral to their success and the broader societal good.Cultivating an ethos of perpetual growth,learn

108、ing,and refinement is equally significant if the insurers want to remain competitive in the market for top-tier talent.Peering into the insurance horizon,its teeming with potential.By championing innovation,customer-fo-cus,and sustainability,insurers can not only persist but flourish in the forthcom

109、ing era and be on path to become insurers of the future.5.Concluding Remarks:The Road Ahead for our Insurance CustomersC0 M0 Y0 K0WhiteWAVESTONElogotypeJOB:SGK24marENUMBER:5034_003484Date:06/03/2024Scale:vectorSize:vectorFabrication:printingEduardo DAlma is Partner at Wavestone and heads the Insuran

110、ce International division.He has more than 22 years of profes-sional experience in the global in-surance industry with a focus on transformation.August Majer is Senior Manager at Wavestone and focuses on topics of technology innovation,InsurTech,and AI in insurance.He has more than 10 years of professional expe-rience working for some of the larg-est insurers in the world.