Intelligent Insurer: Creating Value from Opportunities in a Changing World 

Against a shifting macro-economic and regulatory landscape, we have found a number of deeply rooted forces – global mega trends – are driving fundamental change to the way organizations do business around the world. In the Intelligent Insurer, our global thought leaders explore how these forces create both opportunities and challenges for the insurance industry.
Demographics +
< Growing populations and longer life expectancy create opportunities for insurers but pose important questions about healthcare and retirement products are best structured and delivered. Meanwhile, continuing urbanization and changing generational attitudes towards insurance products pose challenges and opportunities of their own.
Environment +
< The combination of natural catastrophes, urbanization and growing wealth are changing the shape of risk for insurers. Economic expansion is driving more resource-intensive consumption and greater resource insecurity, while climate shits add further challenges.
Technology +
< Greater connectivity and use of social media provide insurers with access to unparalleled wealth of data. While cloud computing creates potential to enhance flexibility and reduce costs, may insurers are constrained by legacy systems.
Social values and ethics +
< More effective engagement is needed to overcome the erosion of trust as expectations of good governance are changing dramatically. There is a significant opportunity to harness the power of social media to empower stakeholders as ambassadors for responsible business. However, divergent social values and economic outcomes mean social unrest remains a threat.

Insurers and reinsurers will need to adapt to these trends in order to remain competitive, stay relevant to their customers, accountable to stakeholders and create value for investors. How the industry meets these challenges today will shape the future role of insurance in society tomorrow.

Mapping the global mega-trends onto key components of the insurance business model, we illustrate the primary inter-relationships driving change in the industry now and over the next decade.

products and markets rollup
distribution and operations rollup
governance and people rollup
Regulation and capital management

Our global insurance experts continue to examine the impact the mega-trends are having on an insurer’s business model. From evolving customer expectations to the rapid emergence of new digital technologies which are having a transformational impact on the volume, variety and velocity of data now available. Read more on evolving customer needs in the Valued Insurer, and on technology impacts in Transforming Insurance.

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Creating Value from Opportunities in a Changing World

Creating value rollup
Intelligent insurer considers external forces that will impact their business model over the next 10 years, including shifts in demographics.