One of the key findings of PwC’s 21st Global CEO Survey is that whilst insurance continues to be one of the most disrupted sectors in the global economy and insurance CEOs are extremely concerned about the pace of technology change and cyber threats, surprisingly, they are also optimistic about their organisation’s revenue growth in the next three years.
A major US automaker was involved in three of the biggest product liability payouts of all time, the latest having been in February 2014, based on faulty ignition switches that could shut off vehicle engines during driving, disable power steering and brakes, and prevent airbags from inflating.
Asia is vast geographically, comprises more than 15 major jurisdictions and possesses extreme diversity in terms of the ethnicity of its population, its cultures and the varying stages of economic, social and technological development in each country, making it one of the most varied markets globally.
Keeping pace with changing demographics, changing customer expectations, as well as technological advances are some of the major challenges that insurers face, and is likely to continue to be a major concern in the next 2-3 years.
From tracking drivers’ braking behaviour, to installing wearable devices on factory workers, to funding medical advice mobile apps, many insurance companies are trying to become more present in their customers’ lives.
Disruptive innovation is amongst the most referenced but least predictable trends to impact the insurance industry in a generation and it remains a pervasive challenge for many in this regulated industry.
Across the diverse Asia Pacific region, a number of forces are converging to create a pressing need for insurers to innovate throughout their entire value chain: premium growth is slowing, even as new markets open; consumer demands for digital products and services are increasing; competition within, and from outside, the region is growing; and regulators are developing more complex rules to protect consumers and reduce market risks.