Earlier this month, ICMIF Supporting Member EY published the 2023 edition of the annual EY Global Insurance Outlook (pdf). The key message of this latest Outlook is that insurers that harness innovation and transformation to deliver what customers want right now can thrive in the turbulent market ahead.
Key findings are:
- An uncertain macroeconomic and geopolitical landscape has made business resilience a top priority for insurers.
- The huge protection gap for climate and cyber risks, and the shortfalls in health insurance and retirement savings, present a compelling opportunity for the industry.
- The path to growth starts with new solutions and business models that build on fundamental protections to deliver more value to customers.
Launching the Outlook, EY said it is impossible to discuss the current state of the global insurance industry, or its future growth prospects, without acknowledging the highly uncertain macroeconomic and geopolitical landscape. From the lingering aftereffects of the COVID-19 pandemic on workforces and supply chains worldwide, to the devasting impact of the war in Ukraine, along with rising tensions between major global players, spiking interest rates, increasing inflation and fluctuating currency valuations, upheaval is the new normal.
The 2023 edition of the annual EY Global Insurance Outlook explores these complex market dynamics and their impact on insurers’ growth and transformation plans, product and investment portfolios, and financial performance. EY also considers current events and market conditions through the lens of the insurance industry’s purpose, which grows more relevant by the day.
EY believes the huge (and growing) protection and savings gaps clearly demonstrate that more individuals need insurance against a range of complex and proliferating threats. The bottom line, says the Outlook, is that customer needs have changed and insurers that move most swiftly to satisfy them will be in the best position to navigate the recession.
The Outlook includes recommended actions in each of these areas, mentioned in the key findings above, for insurers seeking to seize opportunity as the market continues to evolve rapidly in the coming years.