THE GLOBAL insurance industry is overwhelmingly confident of boosting revenues this year despite seeing little prospect of a return to economic growth, according to a PwC report out today.
The research suggests 90 per cent of insurance chief executives expect to see revenues increase over the next twelve months, despite just 15 per cent of the same executives expecting the economy to improve over the same period.
The insurance industry is enjoying a boom period thanks to fast-growing markets in Asia and South America. London has benefited from this growth, with demand for office space in the City’s insurance district helping to drive construction of new skyscrapers such as the Cheesegrater.
The survey also reveals insurance chief executives believe the availability of talent as the biggest threat to their growth, especially as the focus switches away from Western Europe.
PwC’s Jonathan Howe said: “Trajectories of growth in different parts of the world are diverging; customers are demanding more transparent and accessible products; technology is revolutionising risk analysis and customer profiling; and, the speed of change is putting existing business models at risk.”
“The insurers that come out on top will focus keenly on the customer and have a superior capacity for innovation and reinvention. They’ll be able to anticipate change and how it affects them, as well as be nimble enough to quickly capitalise on emerging opportunities.”
PwC interviewed 92 insurance chief executives from 39 countries as part of the research.