In June 2012, KPMG's Global Insurance practice launched a provocative thought leadership publication, The Intelligent Insurer, which put a spotlight on the dominant forces set to impact the industry over the next 20 years – Demographics, Environment, Technology, and Social values and ethics. We mapped these mega-trends against the insurance business model, and highlighted key opportunities and risks for insurance firms. The response to The Intelligent Insurer was tremendous. It has fuelled many lively and candid conversations with insurers globally about the future of the industry.
Based on feedback from The Intelligent Insurer, over the last eight months we have set about identifying what are the fundamental characteristics required by insurers to survive and thrive over the next decade or two. Activities have been varied and global: we've analysed the performance of insurance firms from the FT Global 500 over a 12 year period and identified where insurers have consistently outperformed their competitors; we've held over 30 calls with groups of subject matter experts. While there were some commonalities in business strategies, we also distilled four consistent attributes among these companies that certainly contributed to their results. While one overarching characteristic is no great surprise – a consistent orientation around customer centricity – these four key attributes of focus, efficiency, agility and trust merit careful contemplation.
During our discussions, insurance executives affirmed our findings. Interestingly, we also found that the firms who continue to be successful - even in a volatile, low yield environment – exhibit specific attributes that set them apart from the competition. We also noted that those firms who have put the customer at the heart of their business were able to punch through the fog and chart a new course for growth.
We continue to explore these themes and elevate the debate. With the customer as their focal point, these insurers are – Focused, Efficient, Agile and Trusted – characteristics of The Valued Insurer that we believe underpin its ability to be successful now and in the future. We believe that insurance is a vital social and economic lubricant – and its role is becoming more important - and more valuable. Through The Valued Insurer, we aim to provide a pragmatic vision of the future and a practical strategy for success.
The Valued Insurer will be launched at the International Insurance Society conference in Seoul on Monday 17 June.
We welcome the opportunity to continue our dialogue with clients and will be glad to discuss in greater detail how the key attributes of The Valued Insurer align with your organization.
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