Insurers face declining CEO confidence amidst rising uncertainties

Economic volatility, technology risks, and workforce challenges weigh on industry leaders.  

CEO confidence in the global economy has declined from 93% in 2015 to 72% today, according to the KPMG CEO Outlook 2024. In the insurance sector, leaders are grappling with challenges, from geopolitical tensions to rapid technological advancements, leading to uncertainty in business planning and operations.  

Pearlyn Phau, CEO of Singlife Singapore, attributes the decline in confidence to a combination of internal and external pressures reshaping the industry.

"The emergence and surge in AI and its expanding use cases have indeed created uncertainties and perhaps unease in certain segments of the workforce," Phau noted. While AI offers efficiency, improved customer experience, and higher precision in decision-making, it also raises concerns around job displacement, data security, and ethical usage.  

Phau stressed that, despite these technological advancements, the insurance industry remains fundamentally built on human interactions and empathy. "Insurance is also an industry that is predicated on empathy, human judgment, and personal interactions, which cannot be replaced by technology," she emphasised.  

In addition to technological shifts, insurers are contending with volatile geopolitical conditions that have far-reaching impacts on the industry. Regulatory complexities are another significant factor contributing to the decline in confidence.

Despite these challenges, Phau believes insurers can rebuild confidence by embracing innovation and strengthening operational resilience. "We need to continue to digitise our services and move more processes onto the web and the app to improve accessibility and convenience," she said.

"We have to continue focusing on ESG commitments and investing in talent to equip our workforce with the right skills and mindset to drive innovation and growth," she added.