Accenture's "CEO Briefing 2014," a report compiled by The Economist Intelligence Unit that provides a mix of macro-economic, geopolitical and global business insights, reflects the views of more than 1,000 C-suite executives—including 86 from the insurance industry—on future developments in the global economy and at their companies.
In its new report, which characterizes insurers as "cautiously optimistic" about their prospects, the Economist Intelligence Unit reveals the risks that the greatest number of respondents identified as most concerning in the next 12 months.
Consolidation is a key concern for insurers, and is ranked by respondents as the second-most important risk their companies will face over the next year. Some see pressure mounting for firms to consider mergers or acquisitions as the need to invest in technology becomes greater—something more easily achieved from a place of financial strength. The tightening of regulatory regimes around the world is another driving factor, as smaller companies find it increasingly difficult to afford the escalating cost of compliance.
The report is not all doom and gloom: The good news is that a boost to profitability may soon be seen as interest rates gradually begin to rise—welcome news, to be sure, given that the industry makes a comparatively smaller profit on underwriting than in long-term investments.
Check out the full report here.
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