As change accelerates, insurers need profound transformation and the right talent

As insurance industry growth remains stagnant for another year due to low interest rates, the shifts in consumer demographics around the world, coupled with heightened expectations for digital experiences, present insurers with risks and opportunities.

This is according to the EY Insurance Outlook 2020 report from assurance, tax, transaction and advisory services provider EY. Based on collective sector workshops with insurance leadership across the globe (Americas, Asia-Pacific and Europe) and a formal survey of EY insurance professionals and external analysts, the report reveals what life and non-life global insurers plan to prioritise in the year ahead to remain competitive in this new paradigm.

Insurers agree that talent is the "secret sauce" to maximise returns on investments in technology, digital transformation and new business models. But with the industry struggling to attract the right talent, the report finds that insurers need to either reposition themselves as technology firms or proactively communicate on why the industry matters, what value it brings to society and the overall appeal of an insurance career.

Isabelle Santenac, EY Global Insurance Leader, said: "In an industry that impacts our lives every day – from natural catastrophes to cyber-risks to better health outcomes – and in an increasing digital world, being more customer-centric and improving the customer experience is an imperative.

“Considering the emergence of new risks, insurers should focus on risk prevention in addition to risk management. Attracting and retaining the right talent as well as reskilling the existing workforce will be essential in this transformational journey."

Additional priorities for global life and non-life insurers according to the report include achieving operational excellence and cost efficiency; managing regulatory pressures; digitising distribution; mastering emerging and disruptive technology; and navigating the risks and opportunities of climate change.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

​Swiss Re agrees to sell ReAssure to Phoenix Group  ​ California bans insurers from dropping policies in wildfire areas ​ B2B insurtechs offer investors the best near-term opportunities - report Global P&C insurance 2020 outlook remains stable Gallagher appoints new CEO of Canadian Brokerage Operations Guy Carpenter to enhance offering for US public entity clients Total economic losses from Typhoon Kammuri expected to exceed $100m Hagibis claims to exceed €5m ($5.5m) – Sava Re

Don't miss our insurtech email newsletter - sign up today