The insurance sector is said to be undergoing a significant transformation. KPMG Ireland noted that as market dynamics continue to shift and new challenges present themselves, insurance industry professionals are under mounting pressure to improve agility, boost operational efficiency, and provide considerable cost reductions.
KPMG Ireland also mentioned that despite significant investment and effort, only a minority of insurers have now achieved their transformation and cost objectives. What sets these initiatives apart, and how can others effectively replicate their achievements?
Drawing on key insights from an international survey of more than 250 insurance execs as well as in-depth interviews with industry leaders, “Insurance transformation: The new agenda” examines the different strategies, key opportunities, as well as the complexities shaping the future course of the insurance industry.
This report includes insights from KPMG’s global insurance professionals, offers actionable guidance for CEOs, CFOs, COOs, and transformation professionals looking to enable more “meaningful” change.
As stated in a blog post by KPMG Ireland, recent years have seen insurers benefit from relatively strong margins and profitability, but the landscape is changing now. Economic uncertainty, evolving customer expectations, and the rise of new technologies are “forcing insurers to rethink their operating models.”
According to the KPMG 2024 Insurance CEO Outlook, 73% or the majority of insurance CEOs are confident about growth, yet “only 25% of transformation and cost initiatives are considered highly successful.”
The gap between ambition or aspirations and achievement is seemingly quite clear.
Indeed, the report acknowledges that transformation is not without its pressing challenges. Many insurers tend to struggle with the overall complexity of change, “lack of alignment between cost and transformation objectives, and insufficient ownership for delivery.”
Smaller companies, in particular, report “lower levels of success.”
The research report emphasizes the significant of more thoughtful planning, proper governance, and a sharp “focus on root causes of inefficiency to ensure sustainable outcomes.”
KPMG’s network of insurance professionals reportedly brings industry knowledge, practical insights, and implementation expertise in order to assists their clients with achieving the full “potential of their people and technology.”