Cyber has dropped from the biggest concern among insurance bosses to seventh, according to the latest CEO Outlook from consultancy KPMG.
The research which questioned more than 100 CEOs across ten markets found that emerging technologies [up from 29% in 2016 to 36% this year]; operational risk [up from 19% to 33%] and talent [up from 13% to 27%] all ranked higher as ‘top of mind risks’ than cyber [down from 42% to 26%].
KPMG found that fostering innovation [25%], becoming more data driven [25%] and implement disrupting technology [24%] were the top three priorities for the respondent CEOs, of whom 19% were UK-based.
Among other findings were the fact 76% of the CEOs questioned are spending much more time on scenario planning as a result of uncertain geopolitical climate and more than half (52%) expect to achieve less than 2% revenue growth over the next three years.
The research also found that 81% of CEOs believe they are actively disrupting the sector; 61% see technological disruption as an opportunity rather than a threat; and 68% said they now take a “personal responsibility” for advocating their customers’ interests.
However, 43% were concerned that a lack of quality data is hindering the depth of their customer insight and only 48% plan to increase investment into innovation over the next three years
Gary Reader, global head of insurance at KPMG International, said: “We’ve reached a point where the old models and processes are no longer fit for purpose. It’s going to take big steps – possibly an entirely new outlook – to drive growth in the future.”
Will Pritchett, head of technology and insurance at KPMG UK, added: “The pace of digitisation and the changing landscape of disruptive technologies is opening up ever greater possibilities for insurers and their customers.
“Customer centricity is now almost mandatory but the industry is still some way off delivering that completely, grappling with the legacy and security of their businesses whilst also trying to unlock the richness of data they hold and can source. The focus and ambition of organisations is undeniable, and notable progress has been made, but taking the pragmatic steps to truly re-engineer their business for the customer is proving harder.”
Thank you to everyone who came to the @InsCharities golf tournament yesterday. The sun shone eventually and a great day was had by all. Well done to the Team @WTW_ins who took the team trophy with 89 points! 👏👏👏 #golf #insurance #insuranceindustry pic.twitter.com/12i7aqV1bz— Insurance Charities (@InsCharities) September 12, 2019
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