ICMIF Supporting Member EY has published the 2024 edition of its EY Global Insurance Outlook which explores the ever-changing insurance industry landscape with the aim to inform the perspectives of senior leaders.
According to the findings of the recent report, the market insurance continues to be shaped by multiple disruptive forces — from technology advancement and new competition, to increased regulatory scrutiny and evolving customer behaviours, to diversifying risk exposures. The report’s authors also believe that the pace of change is not likely to abate in the near future.
Despite these disruptions, however, EY believes there are clear indicators of future growth. These include strong demand signals, new business models and expanding data access that promises to transform risk assessment and pricing. According to the report’s findings, companies which take bold and creative action utilise the power of these trends and convert it to value for their customers, for society in general and their own bottom lines.
A key message of the 2024 Outlook is that restoring trust holds the key to long-term success. The report’s authors say that trust isn’t an end goal in itself, but instead it is a way to strengthen customer relationships, to work productively together with regulators, business partners and other stakeholders. This would also reframe the insurance industry’s core value proposition.
Key areas of focus for this year’s report are the rise of artificial intelligence (AI), the benefits of maximising opportunities to create societal value and the need for innovation as changing customer needs and behaviours mean there is greater competition across traditional insurance product lines. By establishing strategies with purpose and which offer a degree of differentiation in these areas will help insurers achieve enduring performance gains whilst also reducing the huge protection gap.
The Outlook includes recommended actions in each of the areas mentioned in the key findings above to inspire insurers seeking to seize opportunity as the market continues to evolve rapidly in the coming years.
The belief of EY is that, in times of change and uncertainty, people, businesses and communities will look to purchase something that they believe makes them feel safer and more confident about the future and that the insurance industry is best-positioned to deliver such products and services.
