More than 90% of insurance leaders around the world are confident about their organizations’ revenue prospects over the next three years, according to a new study.
Insurance leaders are, however, more concerned about the pace of technological change than leaders of any other industry.
And almost all CEOs in the sector consider cyber threats a top concern.
PwC’s 21st Global CEO Survey, which surveyed 100 insurance leaders, found that they had a generally positive outlook on the industry.
However, actual growth in the sector has typically failed to live up to expectations, the survey found.
Among the survey’s key findings were:
Insurance CEOs’ three biggest concerns are over-regulation (95%), cyber threats (93%) and the speed of technological change (85%).
More than 80% of insurance CEOs are concerned about a shortage of digital skills. That’s the highest percentage in any industry.
Forty-nine percent (49%) of insurance CEOs are planning a new strategic alliance or joint venture to push profitability and growth over the next year.
The pace of technological change may concern insurance CEOs – but it also opens up opportunities for them, according to PwC.
With more business owners moving into the digital realm, for instance, the demand for cyber insurance is on the rise.
“Insurance continues to be one of the most disrupted sectors in the global economy, but there are plenty of reasons to be optimistic,” said Jim Bichard, UK insurance leader at PwC.
“Technological change is impacting all industries, and as companies across the world change the way they do business, they will be looking to the insurance industry for help in guarding against new risks and fueling their own growth.
This is a huge opportunity for insurers to provide innovative new products and help protect society from the new risks associated with flexible workforces, connected homes and cyber threats.”
That’s not to say insurance companies don’t need to adapt.
66% of insurance CEOs told PwC that there’s increasing pressure on their companies to deliver results in shorter timelines, and 78% see changes in consumer behavior as a threat to growth.
“Insurers shouldn’t be underestimating the need for longer-term transformational change into digitally enabled, customer-focused organizations,” PwC said.